If SE is taking away my hard work...

[hua]

Just pretend the government decides to take away all your dimes and replace it with a silver dollar for every ten dimes. Now all you have is one coin rather than ten. Would you rather have your ten dimes back or better yet, a hundred pennies for quantity sake even though its purchasing power is the same?

Are you willing to pay the price knowing that the items are ridiculously overpriced? Not everyone has max gil and people who couldn't afford certain items in 1.0 for sure won't be able to afford it in 2.0. Factor in new comers that sure as hell won't be able to afford items even if it's sold at half 1.0's price.

[viion]

Just pretend the government decides to take away all your dimes and replace it with a silver dollar for every ten dimes. Now all you have is one coin rather than ten. Would you rather have your ten dimes back or better yet, a hundred pennies for quantity sake even though its purchasing power is the same? Are you willing to pay the price knowing that the items are ridiculously overpriced? Not everyone has max gil and people who couldn't afford certain items in 1.0 for sure won't be able to afford it in 2.0. Factor in new comers that sure as hell won't be able to afford items even if it's sold at half 1.0's price.

Inflation has proved people will pay extreme prices, even when not in major demand. I have successfully raised the price of many materials and shards to well over 3-4 times their value and people are happy to pay this.

You can't count on the fact that people will not buy products are steep prices. @darkstarpoet1 has pointed out some very good reasons as to why items will lower and lower, but like he said its not based soley on people refusing to purchase expensive prices (Which I believe is not a valid reason because people already pay hyper inflated expensive prices now).

You can see it in the real world. An IPad will come out and be $600, but they all sell and end up at $1500 on ebay, and they DO sell. People sell GoogleIO tickets for $2000, this is almost 4 times as much as its original value but that didn't stop people, to them its a reasonable price, they are happy to pay the insanely high price. (That argument, is solely to prove that people do infact pay much higher prices).

[KiriA500]

You can see it in the real world. An IPad will come out and be $600, but they all sell and end up at $1500 on ebay, and they DO sell. People sell GoogleIO tickets for $2000, this is almost 4 times as much as its original value but that didn't stop people, to them its a reasonable price, they are happy to pay the insanely high price. (That argument, is solely to prove that people do infact pay much higher prices).

Yes, but those things already have a set price. People just exploit others for the sake of profit. An iPad is not worth $1500 ever, but some stupid Mac lover will pay that price because they GOTTA HAVE IT, when they could just wait 2 months and find them everywhere. Nobody is happy to pay more than twice what an item is worth...they just do it because they're stupid and want it sooner than later.

[viion]

Yes, but those things already have a set price. People just exploit others for the sake of profit. An iPad is not worth $1500 ever, but some stupid Mac lover will pay that price because they GOTTA HAVE IT, when they could just wait 2 months and find them everywhere. Nobody is happy to pay more than twice what an item is worth...they just do it because they're stupid and want it sooner than later.

Right.... That is exactly my point...

[KiriA500]

Right.... That is exactly my point...

So, let the stupid people lose their money. Smart players will know better.

[Shougun]

So, let the stupid people lose their money. Smart players will know better.

Yay lol, this part has gets me excited. A lot of the people talking max gil have used the massive gil from leve's thing which is gone now. So.. pretty excited that some of these people are silly, will be glad to see a lot of the gil being finally traded in hands and taken to the sink.

[Wynn]

Yes, but those things already have a set price. People just exploit others for the sake of profit. An iPad is not worth $1500 ever, but some stupid Mac lover will pay that price because they GOTTA HAVE IT, when they could just wait 2 months and find them everywhere. Nobody is happy to pay more than twice what an item is worth...they just do it because they're stupid and want it sooner than later.

Right.... That is exactly my point...

So, let the stupid people lose their money. Smart players will know better.

Smart players would exploit these people.

You're right. And it will happen.

But the great thing about that situation is that those people that are willing to pay those outrageous prices will suddenly find they hemorrhaged money much faster than they were able to take back in because redenomination smacked them right upside the head. And they won't realize this until they are broke or close to it which will happen very quickly.

Once those people have no more money to pay outrageous asking prices, guess what happens to those prices? That's right. They inevitably fall since the seller can no longer get what they were originally asking. It is a win/win. Market stabilizes to reasonable prices and idiots with money are parted from it.

[Rizon]

You're right. And it will happen.

But the great thing about that situation is that those people that are willing to pay those outrageous prices will suddenly find they hemorrhaged money much faster than they were able to take back in because redenomination smacked them right upside the head. And they won't realize this until they are broke or close to it which will happen very quickly.

Once those people have no more money to pay outrageous asking prices, guess what happens to those prices? That's right. They inevitably fall since the seller can no longer get what they were originally asking. It is a win/win. Market stabilizes to reasonable prices and idiots with money are parted from it.

you will be correct for about 4-6 months after launch. After that point, if the game is successful, then you will begin to see to an upswing in prices as a result of the large influx of currency into the economy. At that point the people who spent all their time collecting Gil will begin to control the Wards and will drive prices higher.

[Wynn]

you will be correct for about 4-6 months after launch. After that point, if the game is successful, then you will begin to see to an upswing in prices as a result of the large influx of currency into the economy. At that point the people who spent all their time collecting Gil will begin to control the Wards and will drive prices higher.

I think you are right, to a certain point.

But the fact is, you can't get blood from a turnip. You can ask for a certain price all you want, but if it is too high and there are lower priced alternatives you will be hard pressed to make that sale without some kind of compromise. The median will be found no matter how many people are resistant to that process unless it is everyone, and that is highly unlikely. In fact, I guess you could argue that if everyone were resistant to prices going down that would mean things are already correctly priced.

Another point is that there will always be people who are willing to undercut prices in order to make a sale if the item is worth selling and lowering the price does not put the seller in the red. As inflated as our economy is even now you see the evidence of that everywhere you look on the ward search.

A good example is the relics. What happened when Atomos was spitting out gil like a pez dispenser? Prices quickly bloated. Especially for the relic starters. Seeing one of those weapons for 30mil was suddenly normal. And, yes, for a little while people were actually paying those prices because they had it... from farming Atomos.

Last week, double melded astrolabes on my server were selling for 16mil which was down from what it was just after the Atomos inflation. They actually got upwards toward 25mil at the height. This week, they are 10mil. In one week they dropped 6 million gil. And I expect they will drop even further before the game shuts down.

Why? Well for starters, I think they aren't actually worth 16 mil and I think most would agree. But also because those people who were willing to drop that kind of cash on these items are broke again. They've lost their purchasing power. And the sellers are being forced to reduce their asking prices to move their product. Otherwise it just rots there. And people are undercutting them, driving the prices even lower.

We will see similar things happen after the game's reboot at the start and well on into the game's life. That's just how it works in these games. It shouldn't really be new to anyone who is an MMO vet.

[AzuraSin]

Just pretend the government decides to take away all your dimes and replace it with a silver dollar for every ten dimes. Now all you have is one coin rather than ten. Would you rather have your ten dimes back or better yet, a hundred pennies for quantity sake even though its purchasing power is the same?

Are you willing to pay the price knowing that the items are ridiculously overpriced? Not everyone has max gil and people who couldn't afford certain items in 1.0 for sure won't be able to afford it in 2.0. Factor in new comers that sure as hell won't be able to afford items even if it's sold at half 1.0's price.

This.

Look, the re-denomination does not affect your effective purchasing power with NPCs and other game functions, so let's table that.

After reading (most of) this thread, it seems those who can grasp the re-denomination are more concerned about prices in the Market Wards. You're arguing about arbitrary numbers, chosen/set by players based on a variety of factors, not the least of which are 1) Current Market Value and 2) Effort Involved to Acquire.

For #1, the Market will need to adjust since players will have 1/10th the gil. Base deduction tells us that if you want to sell items to players, you will have to reduce your prices accordingly. How much you need to adjust will depend on roughly how much everyone else has adjusted since this is a Market. People undercut all the time, offer volume discounts, etc.

You should also keep in mind that certain parts of the game are disappearing which may drastically affect the market economy, such as Arrows. Those people who make/made their fortunes selling arrows will now be selling something else, whether it's rings or ingots or whatever it is, a sudden or prolonged influx of supply will affect demand accordingly.

For #2, we don't know yet how game mechanics are changing, particularly at launch. Rare items may be easier to acquire, or briefly easier to acquire due to bugs/exploits or any number of other factors. Valuation of many items will not be the 1/10th it would be in an all-NPC marketplace, and never will be due to #1. Free markets run on competition, so being able to set arbitrary pricing is a vital and key piece--the trick is pricing it effectively (e.g. low enough that people will want to buy it but high enough that you're not losing money).

Also, people who don't want to "lose" their money will be sinking it into items--probably rare or high quality so they can get the most payout. However, not only will these items be devalued due to the re-denomination, but again with the supply/demand principle, if there are a ton of them available the competition will drive the price down. There's no doubt in my mind that people who do this will lose money as a product of their own actions.

There's nothing to be done but see what the end result is and adjust accordingly, but remember that no one is taking money away from you. If you choose to spend your V2 gil on overpriced items, that's very much your own fault.