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Plex price manipulation, plex up 20 million in less than 24 hours.

First post
Author
Ciba Lexlulu
Stay Frosty.
A Band Apart.
#101 - 2014-03-12 11:29:27 UTC
To reduce PLEX prices, I propose CCP to start paying its developers with PLEXes. As pilot program, lets start with CCP Rise and CCP Fozzie. I am sure this will result in PLEXes to flood the markets as they need to convert them into ISK for food/lodging etc..Twisted
Tippia
Sunshine and Lollipops
#102 - 2014-03-12 11:38:49 UTC  |  Edited by: Tippia
Bael Malefic wrote:
People who use in-game ISK to purchase in-game PLEX to pay for game time are paying *nothing.*
…but the PLEXes they buy still cost $17–$20 so that's still the revenue the PLEXers generate for CCP.

Quote:
If CCP dump plex into the market, for any reason, that is not new revenue, it is revenue they already recognized. Which is a problem.
It's not really any more of a problem than letting people log in. All they're doing is delivering a service someone has paid for.

Quote:
I suspect (but again, lack the data to prove) that making everyone pay for subs/GTC's would generate a more sustainable revenue stream. But I accept I may be wrong.
It may be a bit more predictable, but the sustainability is no different.
Rashnu Gorbani
Federal Navy Academy
Gallente Federation
#103 - 2014-03-12 11:39:43 UTC
Tyburn Stannis wrote:
I Love Boobies wrote:

Unfortunately... some of us have real life money tied up in real life things and are unable to pay with real life money for subscriptions. Some of us are responsible adults and don't depend on mommy and daddy's credit cards to pay for subscriptions.

I

If, as a responsible adult, money is so tight that you can't afford a tenner a month for a leisure activity but you're so addicted you can't stop playing, not sure giving finance lectures and life advice is your forté...

o/

It's so comfortable to be born in the luckier parts of the world. Also entitles you to be a smug apparently.
And a lot of people don't just pay 1 accounts, they have more. 1 is ok, but last time I payed more than 100$ for 3 60 day gtcs, well... you can do lots of things with 100$, for some people that's money. Most people don't make 3-5k a month.
embrel
BamBam Inc.
#104 - 2014-03-12 11:42:25 UTC
Bael Malefic wrote:

If I were in CCP's shoes, I might just remove PLEX from the game entirely and force everyone back to paying RL money for subscription/GTC's to play. Sure, some people will leave. But the revenue needed to keep in business might be more stable.


and the CFO would tell you: NoNoNo, who TF did employ you anyway and what for, sure not for ******* up our revenue stream, but to clean the toilets!

and why would he say that?

A wants to play Eve. He either subscribes now and pays now or he buys a PLEX in-game with ISK and activates the PLEX.

In the first scenario, CCP gets their money now in the second they already have the bucks for quite some time already.

As 10 bucks you received ten years ago should be worth more today than ten bucks you receive today (interests), the second scenario is far better on a company valuation point of view.

All the PLEX being stored in hangars or in market orders is cash CCP already earned and that potentially will never be used for game time.

basically they got almost kinda free lunch thru PLEX.



Erin Crawford
#105 - 2014-03-12 11:44:08 UTC
Bael Malefic wrote:
March rabbit wrote:
Bael Malefic wrote:
Perhaps a ridiculous question, but if all of you "leet" players and sov null gurus are "paying" for your subs through PvE generated ISK, is that not actually creating a non-sustainable revenue model for CCP?

The only people actually paying cash to play EVE then are those who pay subs (which is, reading this thread, apparently no one but me) and the very few that buy PLEX from time to time to inject the ISK necessary to subsidize their play style, whatever that may be. They are actually paying for you to play.

If I were in CCP's shoes, I might just remove PLEX from the game entirely and force everyone back to paying RL money for subscription/GTC's to play. Sure, some people will leave. But the revenue needed to keep in business might be more stable.

Or perhaps PLEX prices in game actually need to go through the roof, just to deter those who have been using in-game ISK to pay their way.

PLEX is 15USD/EUR
1 month is 9USD

So who pays more for game time?


People who use in-game ISK to purchase in-game PLEX to pay for game time are paying *nothing.*

This leaves CCP reliant on people spending real-life money on PLEX to keep the revenue up. If CCP dump plex into the market, for any reason, that is not new revenue, it is revenue they already recognized. Which is a problem.

The relevant question (which I do not know the answer to) is whether the current model generates more or less RL revenue than making everyone pay subs. I suspect (but again, lack the data to prove) that making everyone pay for subs/GTC's would generate a more sustainable revenue stream. But I accept I may be wrong.


As I understand it; PLEX exists because some players have to buy it first with RL money. In other words, if every PLEX available in game was bought using ISK and nobody bought any new PLEX using RL money then the PLEX 'well' would dry up quite quickly.

I guess another way of looking at it is if said 'leet' players are getting their game time, not by spending RL money, but by grinding/generating in game ISK and using that to purchase PLEX which someone else had to spend RL money to get into game and spend.

So 'leet' players are playing at the expensive of others RL money - when using PLEX that is.

"Those who talk don’t know. Those who know don’t talk. "

Bael Malefic
Doomheim
#106 - 2014-03-12 11:59:11 UTC
Erin Crawford wrote:


As I understand it; PLEX exists because some players have to buy it first with RL money. In other words, if every PLEX available in game was bought using ISK and nobody bought any new PLEX using RL money then the PLEX 'well' would dry up quite quickly.

I guess another way of looking at it is if said 'leet' players are getting their game time, not by spending RL money, but by grinding/generating in game ISK and using that to purchase PLEX which someone else had to spend RL money to get into game and spend.

So 'leet' players are playing at the expensive of others RL money - when using PLEX that is.


What I keep thinking:

An entertainment service business model that relies on one group effectively "subsidizing" another will not work for very long, once the group doing all the paying works out how stupid it is to do so and/or works out themselves how to "play for free."

I don't give a rip about cybernetic arms, tattoos or paintjobs for ships. But that's what we get in terms of "new developments" from CCP. And they engineer it so PLEX is the way to obtain said perks.

Again, this seems to indicate the lack of a sustainable business model rather than some brilliant one.

Maybe this is why they are recruiting a "director of monetization"...

I can only use my own experience as an example: I started playing, decided PVP was my "thing", bought some PLEX with RL money to jump-start my PVP experience. Now I can do what I want and no longer buy PLEX. So who is buying it? New players, for a limited amount of time, who then stop.

Suggests CCP better be focused on keeping large numbers of new "casual" players rolling in, since the "hardcore" players are generating no revenue at all for the company. That or change the business model to get money directly out of those "hardcore" people.
Salvos Rhoska
#107 - 2014-03-12 12:01:30 UTC  |  Edited by: Salvos Rhoska
Erin Crawford wrote:
So 'leet' players are playing at the expensive of others RL money - when using PLEX that is.

No.

One player pays CCP money for the PLEX.
Other players then pay ISK to that player for the PLEX.

Its not at anyone's "expense".
Everyone gets what they want.

CCP gets their funding, for providing a service.
One player gets his ISK, for paying for the PLEX IRL.
Another player get their gametime, for paying for it in ISK.

Its a remarkable and ingenius system.

Bael Malefic wrote:
I can only use my own experience as an example: I started playing, decided PVP was my "thing", bought some PLEX with RL money to jump-start my PVP experience. Now I can do what I want and no longer buy PLEX.


How exactly then at this moment are you acquiring gametime for your character/s?
Also, how exactly are you ISK funding your characters activities and losses?
Pew Terror
All of it
#108 - 2014-03-12 12:14:03 UTC
"Money is better than poverty, if only for financial reasons."
Tippia
Sunshine and Lollipops
#109 - 2014-03-12 12:14:17 UTC  |  Edited by: Tippia
Bael Malefic wrote:
What I keep thinking:

An entertainment service business model that relies on one group effectively "subsidizing" another will not work for very long, once the group doing all the paying works out how stupid it is to do so and/or works out themselves how to "play for free."
It's only unsustainable if everyone cares about “playing for free” and can be bothered with the grind required to do so. The good news is: they don't and and can't and never will.

In the meantime, those who can spend cash spend cash; those who can spend time spend time; and everyone involved get more out of it than they otherwise would.
Malcanis
Vanishing Point.
The Initiative.
#110 - 2014-03-12 12:15:14 UTC
Bael Malefic wrote:
Perhaps a ridiculous question, but if all of you "leet" players and sov null gurus are "paying" for your subs through PvE generated ISK, is that not actually creating a non-sustainable revenue model for CCP?

The only people actually paying cash to play EVE then are those who pay subs (which is, reading this thread, apparently no one but me) and the very few that buy PLEX from time to time to inject the ISK necessary to subsidize their play style, whatever that may be. They are actually paying for you to play.

If I were in CCP's shoes, I might just remove PLEX from the game entirely and force everyone back to paying RL money for subscription/GTC's to play. Sure, some people will leave. But the revenue needed to keep in business might be more stable.

Or perhaps PLEX prices in game actually need to go through the roof, just to deter those who have been using in-game ISK to pay their way.


Your plan improve stability by reducing CCP's revenue by about 30% is interesting. Can you explain how definitely earning $700 per month is better than earning ~$950-$1050 per month?

"Just remember later that I warned against any change to jump ranges or fatigue. You earned whats coming."

Grath Telkin, 11.10.2016

Good Posting
Doomheim
#111 - 2014-03-12 12:21:07 UTC
You guys should thank Bael Malefic because he buys plex and we can play for free!! Thanks man.
Sexy Cakes
Have A Seat
#112 - 2014-03-12 12:40:52 UTC
I don't care if a PLEX costs 3 billion ISK.

CCP will never receive another RL penny from me.

Not today spaghetti.

Salvos Rhoska
#113 - 2014-03-12 12:43:38 UTC
Sexy Cakes wrote:
I don't care if a PLEX costs 3 billion ISK.

CCP will never receive another RL penny from me.


I can sell you as many PLEX as you like for 3bil/ per.

How many would you like?
Tauranon
Weeesearch
CAStabouts
#114 - 2014-03-12 12:44:49 UTC  |  Edited by: Tauranon
Bael Malefic wrote:


Again, this seems to indicate the lack of a sustainable business model rather than some brilliant one.



IMO plex is the best method for controlling RMT without destroying the internal currency market. Not convinced that you are offering a convincing argument as to why its not sustainable - not going beyond the horizon of current MMO designs, EVE seems closest to sustainable to me.

Reality is, people like to decorate spaceships, more than they like to decorate space barbies, and that will probably be reflected by better monetization results, simply because this game collected 300,000ish spaceship pilots, minus a bunch of alts.
Bael Malefic
Doomheim
#115 - 2014-03-12 13:12:54 UTC
Salvos Rhoska wrote:


How exactly then at this moment are you acquiring gametime for your character/s?
Also, how exactly are you ISK funding your characters activities and losses?


I pay for subscription and I make enough ISK in game to pay for all the ships/whatnot I want.
Salvos Rhoska
#116 - 2014-03-12 13:17:29 UTC
Bael Malefic wrote:
I pay for subscription and I make enough ISK in game to pay for all the ships/whatnot I want.


Ok then.

Then you are a concrete example of the fact that no changes are needed.
Markku Laaksonen
School of Applied Knowledge
Caldari State
#117 - 2014-03-12 13:18:59 UTC
If only there was a subforum specifically for market discussion. If such a place existed, we could eve go so far as to call it Market Discussions.

DUST 514 Recruit Code - https://dust514.com/recruit/zluCyb/

EVE Buddy Invite - https://secure.eveonline.com/trial/?invc=047203f1-4124-42a1-b36f-39ca8ae5d6e2&action=buddy

Bael Malefic
Doomheim
#118 - 2014-03-12 13:23:58 UTC
Malcanis wrote:


Your plan improve stability by reducing CCP's revenue by about 30% is interesting. Can you explain how definitely earning $700 per month is better than earning ~$950-$1050 per month?


I don't know what the proportion of CCP revenue derived from PLEX sales is vs. paid subscriptions or what the revenue impact would be of switching PLEX over to subs.

If that is indeed the case, and switching all accounts to paid subscriptions would in fact reduce the revenue stream by 30%, then perhaps the current model is the best one possible for the time being. In that case I'd simply wonder how to sell more PLEX and hope the pubbies keep buying them.

Sometimes I forget that these forums are actually all about flames/trolls. I shall refrain from trying to make any constructive comments in future and stick to snarky comments aimed at other posters. After all, this is EVE.
Scrimtar
Aliastra
Gallente Federation
#119 - 2014-03-12 13:32:06 UTC  |  Edited by: Scrimtar
Yaa i get more when i sell life is good Smile
Aralyn Cormallen
Deep Core Mining Inc.
Caldari State
#120 - 2014-03-12 13:40:53 UTC
I get what some people are trying to say, the existance of PLEX does front-load the system, since people paying money for PLEX are going to be the same people paying for a subscription (because I like to think no-one would be dumb enough to buy PLEX for money, then use them for their sub), while the people buying PLEX for isk to sub their game, aren't going to be buying them for money too.

So in effect, half the players are paying for all the subscriptions, making the game less resistant to a sudden outflux of players (since people playing for free have no reason to stop their subs if temporarily unhappy with the game, so any outflux is going to be in the paying half, and cause double the hit). That said, since a PLEX bought today doesn't have to be used on a sub for months or even years in the future, CCP is getting their hands on a large chunk of sub-money early, and assuming they treat it as that (and don't just spend it as "free money"), the price and abundance/scarcity of PLEX on the market can give an early-warning system to CCP that something is amiss. If people stop buying PLEX, CCP can react before the supply dries up, using these "early paid subs" as a safety net to buy them time to correct whatever caused the outflux.