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Thread Statistics | Show CCP posts - 1 post(s) |
Sig Sour
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Posted - 2011.06.01 03:56:00 -
[1]
Solution: $10 PLEX
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Sig Sour
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Posted - 2011.06.04 18:07:00 -
[2]
 Originally by: pmchem
...so why should CCP care if PLEX prices rise?
sell 150,000 units at $15 you end up with $2,250,000 revenue.
sell 300,000 units at $10 you end up with $3,000,000 revenue.
People can squabble all they want about $15 but when people such as myself have cut back from 5 to 2 accounts, they may be missing out on potential revenue they could get if they lowered the price.
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Sig Sour
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Posted - 2011.06.04 19:46:00 -
[3]
Originally by: Jennifer Starling
You're missing parts of the equasion.
If CCP sells 10 plexes they earn $175 but if they in turn are used to get gametime they lose $150 so the net profit is just $25.
If CCP sells 10 plexes they earn $175 but if 5 are used to get gametime and 5 are used for AUR vanity stuff they only lose $75 so the net profit is $100.
If CCP only sells 4 plexes they earn $70 and if 3 are used to get gametime and 1 is used for AUR vanity stuff they lose $45 so the net profit is still $25.
So if the number of sold plexes drop a little CCP still makes a lot more profit when the plexes are partially used for AUR vanity stuff. I think CCP wil only interfere if the break even point between less plexes sold/more profit made drops under the profit they made before AUR stuff. Which won't happen anytime soon as every plex turned into AUR makes them 7 times as much profit as a plex that's redeemed as gametime.
Are you drunk? The only way they lose revenue is if they refund money to customers. I don't know what their costs are so I cant speak profits.
The thing is if people say "I am only willing to spend $20 on Eve this month" and the price brackets are in $15 increments, they lose out on the potential $5 someone was willing to spend. The service PLEX offers is being extended to micro transactions which would, in an AMERICAN company, cause the business to review its pricing to balance it by services available/customer base/potential revenue. I'm not sure if Icelandic companies is that business savvy or if they just go with the flow. I guess we will see.
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Sig Sour
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Posted - 2011.06.04 20:09:00 -
[4]
Originally by: Jennifer Starling
Well I hope you do understand that if I buy a plex for $17.50 but use it for 30 days of gametime CCP misses out on 1 month of subscription worth $15 - so their net profit for selling the plex is just $2.50?
And no I just had a few white wines. Are you drunk?
edit: You're basically asking to lower the subscription to $10 a month. Which isn't going to happen.
:facepalm:
I must be stupid, go ahead an explain to me how giving them $17.50 for a subscription for a month turns into $2.50 they can pay their employees & electrical bills with.
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Sig Sour
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Posted - 2011.06.04 20:20:00 -
[5]
Originally by: Jennifer Starling
I was comparing the effect of rising plex prices, AUR items on their profit from plexes, not from normal subscriptions.
And you were still asking to lower the subscription to $10 so you could play with 5 accounts instead of 2.
You said they only make $2.50 profit off a $17.50 plex that was sold. I still don't follow your logic, and you do not seem to be able to explain it.
I suggested they review their pricing, I never asked for it.
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Sig Sour
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Posted - 2011.06.04 20:46:00 -
[6]
Originally by: Jennifer Starling
1) I buy a plex, CCP gets $17.50;
2) I redeem the plex for gametime or sell it on the market and someone else uses it for gametime;
3) I (or the plex buyer) get 30 days of gametime "free" instead of paying subscription worth $15;
4) CCP doesn't get my (or someone else's) $15 subscription this month;
5) CCP got my $17.50 though for the plex but not my $15 for subscription so they still have an extra $17.50 - $15.00 = $2.50 profit from selling a plex that's being used for gametime.
That's $2.50 on top of any profit they make from the regular $15.00, be it $0.01 or $14.99.
If the plex is used for AUR or character transfer or whatever they get the full $17.50 on top of any profit they make from the regular $15.00, not instead.
So for any plex not used for adding gametime they earn 7 times as much from plex. So even if the plex sales decrease by 50% they earn a lot more as long as theyŚre not used for gametime but AUR or transfers or whatever.
So is what you are trying to say is that "CCP makes additional revenue off PLEX being used for game time as opposed to subscription fees"? You should look up "profit" and figure out what that word means.
If that is what you are trying to say, then what does that have to do with my original statement?
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Sig Sour
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Posted - 2011.06.04 20:51:00 -
[7]
Originally by: Jennifer Starling
edit: understand that if I buy a plex for $17.50 but I (or someone else) use it for 30 days of gametime CCP misses out on 1 month of subscription worth $15 - so their net profit for selling the plex is just $2.50.
Quoted for when you sober up and use a dictionary to figure out what you said there.
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Sig Sour
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Posted - 2011.06.04 21:19:00 -
[8]
Originally by: Jennifer Starling
You're not taking into account that those sold plexes are being used for gametime so are actually only "instead of" subscription not "on top of".
Want a cookie? You know I also was not counting the difference between buying PLEX and GTC's from a resller or straight from CCP, how that affects the fluctuation margins between the time code bizarre and PLEX on the market by region, and what that does to the revenue stream at CCP. Nor was I discussing the impact of real world economics vs in game economics and how the health of the game as a whole reflects PLEX prices to start with. These kinds of things were not mentioned, because it was a basic demonstration. Thank you for trying too hard.
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