Deeds - your opinion

[billairboy]

You are now mixing 2 different things on how the revenue affect the game. The "outside" revenue doesnt create peds. This one does. Dont you see the difference here? (Good observation both of you though! )

I handing over the torch for someone better suited to explain.

I know that.

I think i know what you mean, but the problem is not a problem only connected to the land plots, it's a problem for all the RCE system. The problem is that they don't have our peds as liabilites in their balance sheet, they only have it as an information item "unconsumed player holdings" in their annual reports. You are right that the revenue from the land plots increase our peds, our "unconsumed player holdings", but loot and deposits also increase that. So it's not a problem isolated the land plot revenues.

What i hope they will do in the near future is to make our peds real libailities in their financial reports and put away cash to realy be able to garantie our ped assets. But to do that they need more money. The sell of the land plots increase the possiblity for this because the get RL cash from the buyers, or decrease the peds in game if they are bought by peds already ingame.

 

[GoNi]

consider a cockup before a conspiracy, answer enough? Well to be more specific you think MA is giving out ROI every week to be kind? Hell no, its to get it in small doses so it gets spent. If you got a 1 time payment once a year alot more would be inclined to withdraw. The ROI program is designed so users wont be encouraged to actually withdraw the ROI.

Nothing bad imho, many investors in EU invested not for withdrawing ROI, just for getting some ROI ingame to use it on fun/skilling whatever.
Thats very good for MA as the money stays ingame and very likely will be consumed from decay over time.
Less deposits needed, but that doesn´t say deposits stopped!

What i hope they will do in the near future is to make our peds real libailities in their financial reports and put away cash to realy be able to garantie our ped assets. But to do that they need more money. The sell of the land plots increase the possiblity for this because the get RL cash from the buyers, or decrease the peds in game if they are bought by peds already ingame.

Maybe thats exactly the plan, MA is following.
I would apreciate that, would make investments a lot saver.

 

[Sircus]

Starts reading "How to communicate for dummies"

 

[Sircus]

Operation bailout

Less deposits needed, but that doesn´t say deposits stopped!

What it all boils down to is that after 1 year when all the shares are sold the risk of playing EU will be higher then before. MA will need more deposits then they did before to make ends meet. Since they cant do it with the deposit stream they have today its super uber high risk indeed to have any assets ingame.

If you owned anything pre deeds the risk got higher owning it after deeds. Cant simplify it anymore then this.

Nobody in their right mind would back up the ped with IRL currency as an outside investor. That leaves us with the only investor stupid enough to back it, the Swedish government. Just cant see it happening atm though. If EU was like Facebook, then maybe.

Oh, and ofc owning shares IRL in the company would also be a higher risk.

 

[billairboy]

If you owned anything pre deeds the risk got higher owning it after deeds. Cant simplify it anymore then this.

It's this point that i don't agree on. The risk have always been there, it has not increased with the sell of the land plots.

 

[Farmer Smurf]

MA will need more deposits then they did before to make ends meet. .

How is the situation any different than if MA sold the planet to an outside planet partner?

Except with the deed system MA actually keeps more revenue than if they sold to a PP, and the players are more likely to re spend their payouts.

I just dont see how they are worse off than had they sold to a PP..revenue wise.

 

[Sircus]

How is the situation any different than if MA sold the planet to an outside planet partner?

Except with the deed system MA actually keeps more revenue than if they sold to a PP, and the players are more likely to re spend their payouts.

I just dont see how they are worse off than had they sold to a PP..revenue wise.

I answered the question in an earlier post in this thread.
Answer this question in your head, what happens when you print to much money?

Elaborating earlier posts. The increased risk a player takes will most likely be reflected in prices after 1 year. With the surplus peds, stuff will sell faster, higher average mu, increased mu on uberitems. People will be able to pay more. This is a good thing the deeds will bring for players shortterm(At cost of increased risk)

MA is waaay better off with this model profit wise compared to selling FPC to a PP and giving the PP 50% GR. MA is taking a bigger risk themself and therefore will be making a bigger profit. You know that 25% GR we get in peds? Those 25% GR in hard $ will still be in MA´s control until you hit withdraw. Any PP who adopts the "deed sell out" actually gets shafted of 25% of their GR since it ends up at MA who is in control of the ped flow. I hope people dont actually belive that MA will hold that 25% of your GR in hard $ on their accounts untouched?

I dont know how big cut the PP gets from a deed sale for giving up 25% of their GR. Anyone knows? I guess that MA will be mighty generous to the PP here since they are reclaiming 25% of the GR.

 

[Chrome]

Starts reading "How to communicate for dummies"

This one???

 

[Sircus]

This one???

You need to spread some rep around before...

 

[snake_eyes]

I must admit I never thought MA would go under until they released this lates money making effort...

 

[Miles]

MA has set up Calypso as separate entity - like any PP. Their development costs are not much different than any other PP, but their income is much, much higher, so that 50% of that income is sufficient to continue development - making the land shares viable.

Other planets' income is much less, so they need all their share (and probably more) to develop their planets. This is made more difficult because much of their player base is made of Calypso-born avatars, which means they get a smaller portion of the decay generated by these avatars (which is why it is imperative for PP's to bring in their own players). Once they have sufficient income and enough of a player base to succeed on 50% (or perhaps a different percentage) they will have the opportunity to do the same thing as Calypso.

At the same time, share holders will be more loyal, better word-of-mouth advertisers (the best advertising there is) and as many will recycle their returns, it will inject more peds into the Calypso economy. Win, win, win.



Miles

 

[Waheed]

Not a personal attack this either but you seriously didnt understand the post.
MA is estimating a 27-30% ROI on each invested 1k peds.

We know that 27-30% ROI is only 25% of the Gross Revenue (Now forth GR)
If we would get 50% of the GR on our 1k deed the ROI would be estimated 54-60%

You understand now?

Ofc I know that GR is not pure profit, but was making a cute observation. MA is saying that for each ped we invest, they can make it grow.

If I understand it correctly they arent planning to make a real ROI IRL from our cash. They are just pushing debt to future users (old and new) I think its called a pyramid something

MA isnt and cant create a lender of last resort. A system like this is bound to break. First to probably be tweeked when the system starts to creak is that you get 8 ped per $ when you deposit but you need 10 ped per $ when you withdraw.

Thing is thou, lets say it's 25% of the revenue (Can't really figure out if it's 50% or 50% of 50%)
It dosn't really matter, since they will still not have 4times that as ROI. MA made investments as well, and I'm sure those investment over time has been in the area of 24mill dollars or more, which will still make the ROI a total of 25%