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Robacz
Essence Trade
Essence Enterprises
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Posted - 2008.05.27 13:45:00 -
[181]
 Originally by: Nielas
The only solution I see is EU players cancelling their subscriptions to protest having to pay more than the standard rate.
Standard rate is 15 EUR, so EU players are paying standard rate. Players using USD are now paying less, becouse USD dropped.
BTW, it seems no one posted icelandic VAT rate in this latest re-incarnation of "zomg euros pay more!" thread yet: 24,5%.
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Sky Marshal
Aeden
Tau Ceti Federation
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Posted - 2008.05.27 13:58:00 -
[182]
Edited by: Sky Marshal on 27/05/2008 14:00:33
Same with that, 131$ = 83 Euros, so 83 * 24.5 = 103 Euros, not 131 Euros.
24.5 VAT != ~57% price difference.
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Removing/Replacing Local is the stupidest idea who can be asked, ever. |
ApaKaka
Lone Starr Corporation
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Posted - 2008.05.27 14:19:00 -
[183]
Do icelanders pay icelandic VAT for their subscriptions now?
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Commander Criton
Galactic System Lords Inc.
Galactic System Lords Alliance
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Posted - 2008.05.27 14:31:00 -
[184]
This topic always confuses the hell out of me i mean its all relative no? people complain that if they convert there pounds into dolla's its cheaper and it is but end of the day $15 dolla's to someone living in the US is the same as ú15 to someone living in the UK (take currency converting out of the picture we dont go down tesco get our shopping and ask to pay in dolla's because its cheaper.)
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Malachon Draco
eXceed Inc.
eXceed.
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Posted - 2008.05.27 14:50:00 -
[185]
Originally by: Ammoina
This post is going to contain a lot of hypothetical simplified numbers to convey a concept. Bear with them and acknowledge that they're not based on reality. They'll also be currency independent to make life real simple.
CCP Fixed Costs: 1000
CCP Marginal Costs: 0
CCP Euro Income: 1500
CCP American income: 1000
Profit = 1500
People really need to remember here that EVE is an MMO. It's cost structure is a giant fixed cost + tiny marginal cost per customer. Once those fixed costs are paid every single subscription is pretty much nothing but profit. In effect we're all "getting screwed." CCP wants to make the most money possible. So they are attempting to charge what the market can bear.
So lets think about it economically. Lets increase the American subscription in order to match the Euro subscription. In doing so we lose a signifcant amount of American subscribers. CCP American Income* = 500. Their fixed costs don't really change all that much.
CCP Fixed Costs: 950
CCP Marginal Costs: 0
CCP Euro Income: 1500
CCP American income*: 500
CCP Profit: 1050
They've just lost 450 dollars. Now instead of having 1500 units of currency in order to pay their people and improve the game they've only got 1,050.
In other words. It sucks for everyone else still playing EVE. CCP probably have sat down with the real numbers and their predictions and have come to the same conclusion I have. Increasing American subscription costs will cost them money and make it harder for them to improve the game. In other words, European aren't subsidizing anyone. CCP is price discriminating at what the market will bear in order to, hopefully, make the game better for everyone.
Interesting argument, but still flawed 
You are assuming a certain price elasticity here for the US customer. A price elasticity greater than 1 would indeed cause the effect you describe. Price is increased by 10%, demand drops by more than 10% so assuming costs are mostly fixed, total profit drops. So far so good.
However, you fail to explain why this would be the case for the US and not for Europe. If price elasticity is greater than 1 for the US, wouldn't it be logical for CCP to assume that the same is the case for the EU? Which would mean that the best course of action for CCP would be to lower the price for the EU consumer, draw much more customers and thus increase total revenue.
I think the answer is much simpler. CCP doesn't want to cause an uproar by increasing US prices, and at least for now the lost revenue is not so great as to cause them much worry or force them to do so.
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Robacz
Essence Trade
Essence Enterprises
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Posted - 2008.05.28 10:20:00 -
[186]
Originally by: Sky Marshal
Edited by: Sky Marshal on 27/05/2008 14:00:33
Same with that, 131$ = 83 Euros, so 83 * 24.5 = 103 Euros, not 131 Euros.
24.5 VAT != ~57% price difference.
Yes the rest is dropping USD. It is a loss for CCP, but companies with global sales have to count with currency fluctuations (and rarely they will change prices everytime this happens).
The only people who are profitting from this are non-US customers using USD to pay for their accounts. For US customers, nothing changed. They still pay $15. Their incomes were not adjusted to reflect dropping USD/EUR rate, so relative value of $15 is still same for them.
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h zebra
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Posted - 2008.05.28 10:54:00 -
[187]
Edited by: h zebra on 28/05/2008 10:54:22
Originally by: Robacz
The only people who are profitting from this are non-US customers using USD to pay for their accounts. For US customers, nothing changed. They still pay $15. Their incomes were not adjusted to reflect dropping USD/EUR rate, so relative value of $15 is still same for them.
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my subscription has infact gone up 18% because im being made to pay for my subs in a currency that isnt the one i get paid in. what do you think the US responce would be to being made to pay in euros and a increase of 57% just because of the currency dropping?. last year i paid ú90 now its ú105. give me teh option to pay US rates plus 24% please
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deadmeet
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Posted - 2008.05.28 11:33:00 -
[188]
It's not only CCP, All game industry f*** the european people with their price management.
The conversion is generally simple : 1$ = 1Ç, so a 60$ game = 60Ç game in europe... We are the sheep that pay game development to let american, corean and others people to play for cheap price...
You are not agree with this system ? Just stop buying game, cancel all your mmo account, go in the street and boycott them all 
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