ARR Gil Cap Reduction

[Duuude007]

Our gil is cut by the same ratio. For all intents and purposes 600 gil (2.0) = 6000 gil (1.0).

Precisely.

[Deakka]

Think of ARR gil as a new currency. Call it "Yoshi gil" in your head if it helps. Think of your current gil as "Tanaka gil". FFXIV:ARR doesn't accept Tanaka gil. Think of it as a foreign country. To spend your money there you need to have your Tanaka gil converted to the local currency, Yoshi gil. The conversion rate is 10 Tanaka gil to 1 Yoshi gil.

You sir, or madam, are a genius. I was prepping a big image file with shiny blue balls and big red dogs to illustrate that point, but you saved me the trouble <3

[Claustrum]

If the ability to make gil in the future is unchanged, then, in affect, SE simply took 90% of your gil.

Reserves -90%. Income -90%. Expenditures -90%. All 3 seem accounted for based on their official statements. Ratios of all 3 should remain unchanged unless people are stupid/dbags. The only difference is the number. If the government says 10 miles now = 1 neo-mile, that doesn't mean your car with only 10,000 neo-miles on it doesn't have a helluva lotta miles on it. The distance your car has travelled has remained unchanged. The only difference is the arbitrary denomination of that distance we choose to use.

[Matsume]

Noctis, remember page 65? or should i say post #644?

Its all good. I think this thread has run its course. Nothing left to do but wait.

I guess I was wrong...

So i'm gunna throw another log on the fire:

Remember when France converted from the French Franc to the Euro? Prices of food amongst other things have never been more expensive.

Okay so international economics might be slightly more convuluted and complicated than our in game economy. But the point is converting one form of currency into a more/less valuable form of currency carries unintended consequences and the price of goods after will never be equal to their price before hand. Thinking that players will price goods and services for 1/10th their current value is naive.

But really what does this have to do with removing arrows from the archer class? Why is SE trying to mask this anti-inflationary measure by claiming it's the arrows fault?



I blame the rabbit.

[NoctisUmbra]

Also a lot of people are posting knee jerk reactions without giving much thought.

Now let's consider the primary topic of discussion in this thread: how the player-driven market will respond to this new denomination.

A lot of us seem keen on discussing whether prices will drop to 10%, how quickly they'll drop, or even if they'll drop at all. Everyone is so keen on predicting the impact of this redenomination as a lone variable, when in fact it isn't.

Consider the timing of this redenomination. We're entering a new game, for all intents and purposes, where some items that currently exist are to be destroyed (converted to gil), new items are to be introduced , and the rest are to have new values based on balance changes and DoH/L changes. Essentially, even if there was no redenomination to be done and we were to enter ARR with our current inflated gil values, the market would still be drastically different than it is now.

Prices in the market fluctuate by large values all the time based on supply and ever changing demand. So expecting prices to remain as they are now in 1.0 after we move to ARR is already far fetched.

After we accept that prices will drop drastically in the market due to the new denomination of gil, discussing whether or not they will drop to 10% is ludicrous when so many stronger variables are at work. Why discuss whether a material will drop in price from 3k to 300 each when gathering and crafting changes can easily have that value fluctuate anywhere between 100 and 1k or more?

TL;DR: They couldn't have picked a better time to redenominate gil since the player driven market will already need to rebalance after we switch to ARR due to balance and DoH/L changes.

[Matsume]

I still blame the rabbit

[PandaTaru]

A little interlude I'm sure will lighten everyone's heart

http://www.youtube.com/watch?v=eC1tikkotVU

[Claustrum]

Okay so international economics might be slightly more convuluted and complicated than our in game economy. But the point is converting one form of currency into a more/less valuable form of currency carries unintended consequences and the price of goods after will never be equal to their price before hand. Thinking that players will price goods and services for 1/10th their current value is naive.

How exactly is that naive? The math supports it. Granted, it will probably not be exactly 1/10. Partly because of the human element, and partly because of changes in the game not directly related to gil. So what will the actual ratio be? Roughly half the people posting in this thread seem convinced that it will be worse than 1/10 (meaning more expensive). I can just as easily call them naive for not thinking things will become cheaper.

The exact cost people will be willing to sell things for is unknown to all of us who are not clairvoyant. I claim it will be roughly equal, and the math supports this theory. Others claim it will be worse, because the math isn't everything, and the human element is more substantial. I hope after the update those people stupidly want my stuff for the old prices. But how long could they afford to be so wasteful?

[HiirNoivl]

Granted, it will probably not be exactly 1/10.

That's the problem. That's what I have been waiting out this horrible thread to try bring out again. If the price of an item sells for 1000 Tanaka gil ends up settling at just 200 Yoshi gil in ARR that's a 100% markup...

How much of an impact this denomination has on the new economy will largely depend on demand and supply and not the availability of gil. The only governing power to depress prices will be NPC shops, and NPC shops don't sell HQ items. And NPCs will not sell everything in the game.

How many of you know exactly how much everything costs in the game markets right now? How can you guarantee that you won't accidentally buy something at too high of a Yoshi gil price? I'm having a bit of an experiment. Before the servers go down, I'm going to record the prices of certain items in the Market Wards. Immediately, after ARR launches I'll record prices again and then again some months after, to see how prices settle.

It will be uneven, not a straight across the board 10%. I believe that the redenomination will cost us more in the long run. It's just a question of how much?

[PandaTaru]

How exactly is that naive? The math supports it. Granted, it will probably not be exactly 1/10. Partly because of the human element, and partly because of changes in the game not directly related to gil. So what will the actual ratio be? Roughly half the people posting in this thread seem convinced that it will be worse than 1/10 (meaning more expensive). I can just as easily call them naive for not thinking things will become cheaper.

The exact cost people will be willing to sell things for is unknown to all of us who are not clairvoyant. I claim it will be roughly equal, and the math supports this theory. Others claim it will be worse, because the math isn't everything, and the human element is more substantial. I hope after the update those people stupidly want my stuff for the old prices. But how long could they afford to be so wasteful?

It could last for a while considering that the people who will be willing to buy the items you overprice might be the ones that complain about 2d grass, ask for jump without considering character collision, and so on. Yup, math isn't everything, and if you don't take the human factor and how stupid people can be in consideration, you're just good to knit yourself a pair of panties with your numbers and equations.