ARR Gil Cap Reduction

[Sounsyy]

Q: Will you wipe gil from our characters or change the currency with the launch of ARR?

A: No, there won't be a gil wipe. However, we do currently have plans to decrease the max digit by 1 (999,999,999 > 99,999,999)

This to me sounds like they're just reducing max gil limit, NOT reducing everyone's gil to 10% of what it was in 1.0. Note he says "max digit" not divide player's max gil by 10. The currect max gil you can earn is 999,999,999. The 2.0 max will be 99,999,999. Also, he starts off the statement by saying THERE WON'T BE A GIL WIPE. I think losing 90% of all player's money qualifies as a gil wipe... so I'm pretty sure it won't be done. My two cents.

[Natabant]

This to me sounds like they're just reducing max gil limit, NOT reducing everyone's gil to 10% of what it was in 1.0. Note he says "max digit" not divide player's max gil by 10. The currect max gil you can earn is 999,999,999. The 2.0 max will be 99,999,999. Also, he starts off the statement by saying THERE WON'T BE A GIL WIPE. I think losing 90% of all player's money qualifies as a gil wipe... so I'm pretty sure it won't be done. My two cents.

^This. I don't think SE is dumb enough to take a huge portion of peoples gil away from them, it would probably lose them a lot of customers. I think that anyone with over 99,999,999 will just have their extra gil given to the same npc that will hold all of our items over 100 at the start of 2.0, but that's just my guess.

[NoctisUmbra]

^This. I don't think SE is dumb enough to take a huge portion of peoples gil away from them, it would probably lose them a lot of customers. I think that anyone with over 99,999,999 will just have their extra gil given to the same npc that will hold all of our items over 100 at the start of 2.0, but that's just my guess.

A 90% reduction to the currency as a whole is not "taking gil away." It is a measure against overly-inflated values.

Nobody loses wealth, the way their wealth is numerically represented is changed.

[Punainen]

A 90% reduction to the currency as a whole is not "taking gil away." It is a measure against overly-inflated values.

Nobody loses wealth, the way their wealth is numerically represented is changed.

Its slightly more complicated than that. As that makes it so anything that used to cost, say... 100 gil, if still listed at 100 gil, is a 90% increase in price. The problem lies in the fact that, those used to the current pricing will NOT begin charging 90% less for all their items. An item that sells in the MW for 10k, is NOT going to drop to 1k. It will remain at 10k. So beyond NPC values (which hold extremely little control over the economy), all they're really doing is making everyone poorer.

[NoctisUmbra]

Its slightly more complicated than that. As that makes it so anything that used to cost, say... 100 gil, if still listed at 100 gil, is a 90% increase in price. The problem lies in the fact that, those used to the current pricing will NOT begin charging 90% less for all their items. An item that sells in the MW for 10k, is NOT going to drop to 1k. It will remain at 10k. So beyond NPC values (which hold extremely little control over the economy), all they're really doing is making everyone poorer.

Oh, but they will. Sure prices won't change immediately but they definitely will drop, and likely drop rapidly. When everyone has 10% of what they used to then they won't be buying certain things for what they're willing to pay now.

I'm not saying there won't be some sort of transitional period... in fact expecting there not to be would be silly for many other reasons as well considering gathering and crafting are undergoing fundamental changes... but rather I'm pointing out that what they're doing isn't a Gil wipe... it's a digit drop.

[Punainen]

Oh, but they will. Sure prices won't change immediately but they definitely will drop, and likely drop rapidly. When everyone has 10% of what they used to then they won't be buying certain things for what they're willing to pay now.

I'm not saying there won't be some sort of transitional period... in fact expecting there not to be would be silly for many other reasons as well considering gathering and crafting are undergoing fundamental changes... but rather I'm pointing out that what they're doing isn't a Gil wipe... it's a digit drop.

Except it wont drop by 90%. An item that currently sells for 1mil will likely NEVER get down to 100k. At this point it would actually be BETTER to wipe everyone's gil, because then EVERYONE would have to deal with it being harder to earn as much gil as before, and therefore new prices will be set immediately, rather than having to gradually lower and likely never get down to what they should be.

Also, its a bad idea, as at the moment the idea of RMT is laughable by most people, as when gil is this prevalent, why would anyone feel the need to buy it? But increasing the demand for gil, increases the demand to BUY gil, which makes RMT more successful.

[NoctisUmbra]

Except it wont drop by 90%. An item that currently sells for 1mil will likely NEVER get down to 100k.

Interesting... and what exactly do you base this assertion on? I mean we can all assume what we want and pretend we're discussing, or we can look at some facts. If we don't have enough facts, we can at least study the current market and in this case the reason behind the prices placed on items.

Let's go along with your example. What sort of goods can we expect to find selling on the market for ~1 mil? Some materia? Uncommon/melded/HQ gear? New, high demand items that have just hit the market? For all of these things, how does one determine the value to sell for in game? Are they really based on cost?

On the contrary almost everything selling for 1 mil in game is selling for that price as a means of supply/demand. Supply/demand isn't primarily influenced by the good's cost when the scale tips towards higher demand and lower supply. No matter how high the demand is, nobody is going to be willing to continue to pay 1 mil for something when 1 mil becomes 10x more difficult to make. The sellers in turn are going to have no trouble drastically lowering prices until sales start flowing again and a new value is found in the market that satisfies supply/demand.

So, considering how the market works at such high values, prices dropping from values such as 1 mil to that of 100k is not impossible. It is inevitable.

[NoctisUmbra]

Oh, this just came to mind so I apologize in advance for the double post, but consider the following little brain-teaser:

If you buy something for 500k on the market on November 1st before the Final Save maintenance for the current version and manage to sell this very same item for only 100k in ARR, you will have made a 50% ROI (Return on Investment).

[Takeshi_Eiketsu]

Except it wont drop by 90%. An item that currently sells for 1mil will likely NEVER get down to 100k. They should leave player gil alone!

Also, its a bad idea, as at the moment the idea of RMT is laughable by most people, as when gil is this prevalent, why would anyone feel the need to buy it? But increasing the demand for gil, increases the demand to BUY gil, which makes RMT more successful.

There we go, I have agreed with everything you said til the wipe, so I corrected your statement sir, now I can agree again.

[Sounsyy]

A 90% reduction to the currency as a whole is not "taking gil away." It is a measure against overly-inflated values.

Nobody loses wealth, the way their wealth is numerically represented is changed.

I'm sorry, but I beg to differ. This would be true if players ONLY bought things from npc at npc prices.

If I have 5 million gil in 1.0 and then I go into 2.0 and now I suddenly have 500k. You must be some kind of gullible to expect that people are going to be putting new gear/triple melded gear/whatever up on markets for 500k or less. Players who put gear up for 2mil gil on markets in 1.0 are not going to put that same piece of gear up on 2.0 markets for 200k. It's still going to go up for 1-2mil. But unless you had 10-20mil in 1.0, this once affordable item is now WAY out of your price range.