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How Slicing and "Inflation" Help the SWTOR Economy

STAR WARS: The Old Republic > English > Crew Skills
How Slicing and "Inflation" Help the SWTOR Economy

VenomByte's Avatar


VenomByte
12.20.2011 , 09:46 AM | #11
"But Freeborne" I might say "You're just arguing that the rampant inflation caused by slicing is good because it renders credit sinks in game insignificant, thereby making things cheaper for everyone"

Which is true. But is it really good for the economy? If it is, why not just have no slicing and no training/mount/repair costs either?

Currency stability is of paramount importance to any economy. Just ask Zimbabwe. The problem with an unstable currency is that it becomes desirable to hold asserts instead of cash. In SWTOR terms, this means you're going to be better off hoarding high level mats instead of credits, since the credits will lose value over time much faster than the mats will. When people don't want to hold currency, they are less liquid. Less liquidity reduces trade and slows the economy.

In the real world, if the problem is severe enough (such as the aforementioned Zimbabwe) the principal means of exchange eventually becomes supplanted, by US dollars, gold, etc. In SWTOR, credits are an enforced currency and HAVE to be used in the galactic trade network regardless of stability. Therefore it is in the interest of the economy to have as stable a currency as possible.

SOME inflation can be absorbed, but there is a limit to this. Less is better, and none at all would probably be preferable.

zanthorx's Avatar


zanthorx
12.20.2011 , 09:51 AM | #12
The OP and those supporting him are spot on with the economics here.

There are TONS of credit sinks in SWTOR, vanity items, useful items, items just to blow money on... heck, you can blow a million to get access to the VIP lounge... per character...

Cash in from slicing will soon turn into cash in the pockets of people who sell items the slicers want, and will in turn be blow on the many money sinks that are out there.

A good MMO economy needs multipath income sources, and multipath money sinks, SWTOR has both and only time will let the economy stabilize and grow. Once 6 months has passed if there is still a gross imbalance between class income capability then Bioware will need to look at that and balance it, but to react after only a week of early access would be unwise.

Naters's Avatar


Naters
12.20.2011 , 09:53 AM | #13
Slicing is not the "Free money" everyone seems to think it is. At low levels it seems amazing, but that ends soon enough.

At Slicing 400 your missions all take between 30 minutes and 1 hour. Cost per mission is between 1.4k and 2k. Average return on a mission is 1.5k, with crit returns being 4-5k. World gathering nodes on Balmora average 300-500 credits.

To put this in perspective, My one skill rank up at 38 cost 23k. I regularly vendor green drops for around 500-1k depending on the type of item. Also each mob drops around 100-150 credits(and usually comes in 3-5 packs).

I make more money per hour just doing quests and killing everything as I move from point A to B than Slicing makes from lock boxes/lock box missions. The real money maker for slicing is the selling Augments/schematics/mission items.

Disquiet's Avatar


Disquiet
12.20.2011 , 09:57 AM | #14
I believe it is better to let the economy balance itself than to tamper with it artificially.

Raidr's Avatar


Raidr
12.20.2011 , 10:23 AM | #15
The game has been out to the public a wopping 11.5 hrs. STOP your *****1NG!!!!! If you do not like slicing.. Do not pick it up. there are TONS of things you CAN do. If you need cash to buy stuff, quest, raid, kill mobs over and over again. To earn it.. Or ask a buddy for some that he prob made from Slicing... The game is fine how it is let go.....

Taegost's Avatar


Taegost
12.20.2011 , 10:36 AM | #16
I find this whole debate about Slicing to be very amusing, and I applaud the OP and some of the responses for the thought put into them. I also totally agree.
What gets me though, is that every negative response I see centers around two fallacious assumptions:

1) Inflation is bad
2) This skill is going to have a negative effect on new players

To address #1, inflation isn't necessarily a bad thing. As a matter of fact, controlled inflation is a very good (and necessary) thing for an economy. Do a little research on the subject to see what I mean. As I saw someone else post, the Federal Reserve adjusts interest rates to help control the economy. One of the major factors to doing so is to keep inflation at the proper levels. If you have too much inflation, you have high-priced goods and overemployment. If you have too little inflation, you have low-priced goods and unemployment. There's a fine line to balance to make sure your employment levels (Too much or too little is bad for the economy as well) and prices on goods are at a nominal level.
Don't bother debating this point unless you understand the underlying fundamentals of economics, it's not as simple as "Money is good" which most think it is.
The second point is just outright wrong, for multiple reasons. First is that mods and equipment are available at a fixed price from the vendors, this will not change. Since that is what most newbies interact with, they will be completely unaffected by high prices on goods and materials, and even if they are, they have an alternative to the GTN. It may not be as good as player-made stuff, but it's perfectly acceptable all the way to level 50.
The second reason why it is wrong is that Slicing will actually enhance the new player experience by giving them a way to afford all the things they need, such as skill training, mounts, upgrades, and play around with the social crafting aspects without having to make the hard decision between sending your companions on a quest to get mats to skillup, or buying that next rank of Force OneShotKill.

Shadowclaimer's Avatar


Shadowclaimer
12.20.2011 , 10:42 AM | #17
Quote: Originally Posted by Taegost View Post
I find this whole debate about Slicing to be very amusing, and I applaud the OP and some of the responses for the thought put into them. I also totally agree.
What gets me though, is that every negative response I see centers around two fallacious assumptions:

1) Inflation is bad
2) This skill is going to have a negative effect on new players
#2 is my favorite to address because although it is difficult for new players to buy stuff on AH, they'll also be benefiting from inflation if they're selling stuff on AH as well. The boon to players who take part in the economy is huge from inflation (since it offsets the really high cost of training skills and other expenses that are static) while the only downside is for those who never sell anything on AH/Trade and only buy will have to pay more for said objects.
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KaneMarcus's Avatar


KaneMarcus
12.20.2011 , 10:43 AM | #18
I always enjoy these type of conversations when it comes to in-game economies. Great OP and dicussion points..

relkins's Avatar


relkins
12.20.2011 , 10:48 AM | #19
Quote: Originally Posted by Ayestes View Post
Great post!
Agreed

GVBlackmoon's Avatar


GVBlackmoon
12.20.2011 , 10:55 AM | #20
Quote: Originally Posted by Taegost View Post
I find this whole debate about Slicing to be very amusing, and I applaud the OP and some of the responses for the thought put into them. I also totally agree.
What gets me though, is that every negative response I see centers around two fallacious assumptions:

1) Inflation is bad
2) This skill is going to have a negative effect on new players

To address #1, inflation isn't necessarily a bad thing. As a matter of fact, controlled inflation is a very good (and necessary) thing for an economy. Do a little research on the subject to see what I mean. As I saw someone else post, the Federal Reserve adjusts interest rates to help control the economy. One of the major factors to doing so is to keep inflation at the proper levels. If you have too much inflation, you have high-priced goods and overemployment. If you have too little inflation, you have low-priced goods and unemployment. There's a fine line to balance to make sure your employment levels (Too much or too little is bad for the economy as well) and prices on goods are at a nominal level.
Don't bother debating this point unless you understand the underlying fundamentals of economics, it's not as simple as "Money is good" which most think it is.
The second point is just outright wrong, for multiple reasons. First is that mods and equipment are available at a fixed price from the vendors, this will not change. Since that is what most newbies interact with, they will be completely unaffected by high prices on goods and materials, and even if they are, they have an alternative to the GTN. It may not be as good as player-made stuff, but it's perfectly acceptable all the way to level 50.
The second reason why it is wrong is that Slicing will actually enhance the new player experience by giving them a way to afford all the things they need, such as skill training, mounts, upgrades, and play around with the social crafting aspects without having to make the hard decision between sending your companions on a quest to get mats to skillup, or buying that next rank of Force OneShotKill.
What he said
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