Business And Economy Archive

Thread: What is the affect of external markets on the SWG economy

DarkY0da
Fri Jan 21, 2005 11:39 am
#14

Well lets take a look at ebay for a moment..

I see a few $10= 10mill cr most of the other 10mill cr are $30.

What effect does it have on the economy ?

Caters to Instant players. Buy some credits get the best armor and weapons and buffs and Master in a day.
(I won't go into in general the effect this has on the overall game thinking of grinding and lack of content.)

But instant players don't buy lower quality goods. So if your not a master with 12 Experimentation points. Your not going to make any money off them working their way up in the game. Which in turn pushs crafters into the grind thinking as they won't make any money until they are a 12 point Master. And since masters have so much money high Quality resources prices get set at high amounts.(which greater weighs things toward masters)

The Instant player also doesn't tend to run into as many money sinks. Which means more Money floating around which raises prices.

Since the ingame money means nothing to them. They also are willing to pay insanely high prices for loot and items. Which helps keep prices high.(which again hurts the game for new and casual players.)



There are all other sorts of things I can think of that this affects. And most of them in the end tell players that they need to grind to master. Grind loot and credits. And seriously hurts the new and casual players from being involved in new content like the multi piece loot drops. As the prices for finished products sky rocket to the point that those players can not afford them. Which gets people into the grind thinking so they can have that stuff. Which burns people out on the game faster which means people leave more often.

Now is the game like this currently because of ebay credits ? No. it's like this Currently because holo-grind very strongly pushed the "grind" mindset on players. And in grinding for xp it generates for those players a lot of extra credits in the form of loot and credits from missions. And as all their time is spent grinding xp they simple buy what every status symbols or loot they want at what ever price is set. Also there was a decent number of different credit duping bugs that went on for quite a while. Of which the last one was the most public due to the massive amount of credits it so quickly produced. While with the last dupe they got 75% of the duped credits out of the system it still left at least 180,000,000,000cr in. Which takes a very long time to get worked out of the overall economy.

Message Edited by DarkY0da on 01-21-2005 01:51 PM



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Xeovar
Sat Jan 22, 2005 3:02 am
#15

I certainly agree many people ebay stuff. Many typical players tend to be attracted to it at certain point, especially when they are quitting.

As mentioned before, also players really playing the game can have an excess of cash that they sell because its possible and profitable. This case is relatively harmless, as the player is the player and this is just a funds transfer.

However, there are people who started as players and ended up being "miners" (for lack of better terms) or people that came to the game with sole purpose of mining it - because they already mine different games and this is the next one worth doing it. They are more likely to abuse the system and at the same time they dont add anything to the game environement/community.

Generally, I think that the ability to ebay can corrupt almost everyone and I also believe games would be better without it. Unfortunatelly however, I dont see an effective method of stopping that



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DirthNader
Sat Jan 22, 2005 7:45 am
#16


Let's assume all credits earned on eBay are legitimate. That's a huge (and probably incorrect) assumption, but it's one that needs to be made because counterfeit currency screws up economic models anyway.


If it's all legit, the chances that someone is "mining" credits in-game for the sole purpose of selling them outside of the game are slim, IMHO. The SWG economy has been in the dumper for some time now, and it's probably at the lowest point it's ever been (using Raph's idea thatone way totrack the health of the virtual economy is to monitor the value of the credit on eBay, where it's at an all-time low right now). Equating time to virtual money, and then virtual money to real money, there are much more "profitable" MMORPG's out there right now.


So now we're left with legit credits earned by people who are just playing the game. Well, the way the SWG economy is set up, the long-time crafters and loot hunters are your only significant money sink. When aplayer has hundreds of millions of credits (and for a long-time, top-teir crafter that's not hard at all), a lot of that money is out of circulation. Heck, I haven't been below 70 million in about a year. If these "money sink" players start to get these credits back into the economy via eBay sales, you've got money that was (for all intents and purposes) out of the economy start to make its way back in. That's going to have an inflationary effect on the overall value of the credit.


That being said, I do think that eBay sales are an important part of games like this, if they don't reach the point where people are making a living off of it. There are a lot of players out there who simply have more money than time, and don't want to be a slave to the mission terminal or vendor when they do get to play. Allowing them to buy credits on eBay keeps them in the game, when they would have otherwise left. I'd rather see money being recirculated (even money that was in the hands of the "money sink" players) than see SOE offer a service where you pay for a CSR to mint credits for you on the fly.

Message Edited by DirthNader on 01-22-2005 06:47 AM



The artist formerly known as Ittov
Noboe_Kuri
Sat Jan 22, 2005 12:49 pm
#17


jmg416 wrote:
I've found the vistors of this forum to have a good understanding of how one economic influence might effect another. So I am very interested in what others think of the affects the outside markets have on the SWG economy. By outside markets, I am refering to eBay, IGE and other such outlets for in game items and credits.
Do you feel these hurt the economy or help stimulate it? Does it truly hurt the gameplay for any players directly, or is it just the thought that it's there that detracts from a pure RPing experience? Does it need to be stopped? And can anything actually be done to stop it?





I personally believe it can severly damage the player economy.
What people really dont understand is that SWG is in fact a true "free-market" in where the players set the rules (almost all of them) of the economy. When you purchase credits off ebay for instance, its exactly as if a real life currency would be constantly be traded for a value on the market for another currency. Therefore, the credit within SWG keeps losing value as it becomes easier and easier to get money fast. Its like a government that keeps pumping money and instead of putting the money on the market through legit means (work for instance) it can be bought through another currency. I think it was mainly fueled when people could group and go do solo missions for 37k. I mean in a buff session, one could easily do close to 200k (if not more). Not only did this bring down the value of the credit but prices also skyrocketed. The crafter, knowing that money can be obtained very easily in large amounts, will boost his prices thinking if such and such can do 200k in a buff session, then my clients can pay the big price and anyways get back their money in another buff session. Therefore prices jump, money is being pumped in by loads and we have a phenomenon called INFLATION. Not only this, but you also get new folks signing in the game with only what - 200 credits in their pockets and they find out VERY quickly that its almost impossible for them to get anything at a reasonable price because they simply cannot afford it. This results in new people ending their subscription and SWG ends up with the same old people and no recycling of its community - hence the demise of the game. I think the DEVs did the right thing in stopping the solo missions, but the problem remains that a lot of crafters (on gorath anyways) still charge the big bucks cuz they know there are still some folks out there with a lot of money and hence they will keep their prices up as long as they can suck the blood out of us non-crafters or non-doctors.

Therefore, to remedy this, there needs to be an IMMEDIATE end on credit transfers out of SWG and an attempt of price control to curb the inflation rate (usually thats done through interest rates, but, as we all know theres no interest rates in the game - or should there be?). Lets face it, to have an in-game economy runned ENTIRELY by players is simply not healthy because there lacks a lot of regulatory measures that exists in real life. The devs need to step in and stop that for the sake of the long-term future of the game.

Message Edited by Noboe_Kuri on 01-22-2005 11:57 AM

Message Edited by Noboe_Kuri on 01-22-2005 11:58 AM



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Tqnz
Sat Jan 22, 2005 4:12 pm
#18

I found this link on the forums a long time ago. It was a very interesting article on MMORPG economics, a study of sorts.


http://www.walrusmagazine.com/article.pl?sid=04/05/06/1929205&tid=1



--------------------------------

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Makkir
Sat Jan 22, 2005 10:36 pm
#19






jmg416 wrote:



Why do you believe that the game makers are so opposed?






because they arent the ones making money from it....

it's people selling their intellectual property



Mi'ka elder doc/tk/medic
Makkir elder armorsmith
Nicol elder jedi
Tremk_Stryder
Sun Jan 23, 2005 7:12 am
#20

sony doesnt have any problerm with it because they get the cash in the end


if u were to leave..u stop paying..if u leave and sell your account...then that account is still active and someone is still paying Sony


hence its a win-win situation.



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Makkir
Sun Jan 23, 2005 8:50 am
#21






Tremk_Stryder wrote:

sony doesnt have any problerm with it because they get the cash in the end


if u were to leave..u stop paying..if u leave and sell your account...then that account is still active and someone is still paying Sony


hence its a win-win situation.






are you serious? They have a sticky post that explicitly says you cannot sell/buy credits or in game items/accounts



Mi'ka elder doc/tk/medic
Makkir elder armorsmith
Nicol elder jedi
DirthNader
Mon Jan 24, 2005 12:14 pm
#22






Makkir wrote:



are you serious? They have a sticky post that explicitly says you cannot sell/buy credits or in game items/accounts







I've known probably a dozen people that sold their accounts, and even more who've sold items. No one has been banned.


Sticky posts aside, I doubt SOE cares about what gets bought and sold on eBay. Given the choice between an account closing and an account switching owners, I'd gamble that they'd prefer to keep getting their $15 a month.


SOE's policies on eBay are really a legacy from Everquest. There, people/businesses like Yantis actually had a very real negative effect on the game, farming items that only dropped at certain locations so that if you wanted said item the only way to get it was to pay Yantis for it. There are very few chances for things like that to happen in SWG, but (for example) I imagine they'd step in if someone killed every single acklay and the only way to obtain acklay loot was to buy itfrom their online store.

Message Edited by DirthNader on 01-24-2005 11:15 AM



The artist formerly known as Ittov
Ledao
Mon Jan 24, 2005 12:30 pm
#23






Makkir wrote:





Tremk_Stryder wrote:

sony doesnt have any problerm with it because they get the cash in the end


if u were to leave..u stop paying..if u leave and sell your account...then that account is still active and someone is still paying Sony


hence its a win-win situation.






are you serious? They have a sticky post that explicitly says you cannot sell/buy credits or in game items/accounts






They can say all they'd like, but the fact is that the legality of such prohibitions is questionable at best.


Just because we all agree to the Terms of Service every time we sign into the game doesn't mean that those Terms are enforceable in a court of law.



That article I linked to above is rather lengthy, but in it a Law professor and a business professor deal with just these issues...




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DirthNader
Mon Jan 24, 2005 12:51 pm
#24

True, but they also reserve the right to ban you because you look at them wrong. While the TOS won't stand up in court if they try to sue you or somehow affect your out-of-game business, they can ban your account any time. You don't exactly have a Constitutional right to play SWG



The artist formerly known as Ittov
Flagoo
Mon Jan 24, 2005 4:03 pm
#25

I agree it tends to hurt the servers a bit, but not the way you might expect. The secret to a healthy server IMHO is to have a constant "dying off" of top tier characters. Unless this happens, new players will never be able to climb up and assume the top tier roles, which means they will burn out faster. E-Bay and other things like this keep the old characters in play long after the original player has lost interest, which means there is less opportunities for new players to rise. Intrepid is very much "top heavy." Too many players at the top, and not enough players at the bottom. When things like that happen man, you find the normal operations we all depend on seem to disappear, like medics in the med center or DH-17s for sale alongside some chitin armor. Inflation becomes worse too, making it even harder for new players to get established while having fun doin' it.



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GraySeven
Thu Jan 27, 2005 8:57 am
#26

SOE has the right to refuse service to anyone, for any reason, and you have no recourse aside from reimbursement for any fees not used (i.e. You paid for a 1 year subscription and get banned after 1 month, you are owed for the other 11 months).


SOE is a business. Its not a right or a privellage. Playing this game is a purchased commodity.


Because its a business, however, SOE can not go around banning people without a good reason. When, not if, word got out of a practice such as this, the loss of business would be great.


SOE has a responsibility to its customers and shareholders to insure nothing damages the play experience. If selling of things on Ebay or in other venues causes damage, it is in SOE's best interest to put a stop to it.


The EULA is in place to let everyone know SOE's stance on certain subjects. It is NOT the end-of-the-line though. Not all circustances can be forseen (unless they have the Emperor on the payroll, and we saw his track record of forseeing...) and so when something new pops up they react to it and let everyone know how they feel about it.


I don't always agree with things the Dev's and/or SOE does to this game, and I have been and will continue to be very outspoken about many of them (*cough* factorysupportforshipwrights *cough*) but recognize fully that I am simply a customer and they have no reason to listen to me or even allow me to play their game. I HOPE however, that the Dev's and SOE will listen to its customers so as to better serve them, and have not been too disappointed thusfar.


Don't go around falsely thinking you have any rights here.



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