WOW finnaly beaten to a pulp

[Turisas]

:S

Well firstly I wasn't really concerned with how much you would have paid already in absolute terms, I'm more concerned about how much you would have to pay to be able to play on Blizzard's servers forever, which I see as akin to buying any other game (i.e getting the ability to play the game the way its meant to be played whenever you want)

To put it as simply as possible I was giving you the amount of money you'd have to pay to be able to play world of warcraft for an infinite number of years, which I see as the same as actually owning the game, hence the price of the game

You don't seem to be familiar with some of the basics of financial calculation. Not everyone is thats ok.

I'll help you out.

First you need to know what are interest rates and where they come from: An interest rate comes from the market for future money, what does that mean? It means that if I were to tell you hey you can have either $90 right now or I will give you $100 in ten years, you're prolly gonna take the $90 now. This difference is the discount rate or the interest rate. Interest rates also effect capital pricings, neutral profits, are influenced by money supply factors in modern economies blah blah blah but the gist of it is that future money can be bought by a smaller amount of present money.

Now when you calculate how much present money is worth in future money you say something like $100*(1.05)^2 to get the value of $100 today, 2 years from now at a 5% rate.

To get the value of $100 in two years today you do something similar: $100*(1.05)^(-2). This is called the Net Present Value, or NPV

Now, when you want to figure out lets say the NPV of $100 paid to you each year for the next n years you are adding $100*(1.05)^(-n) + $100*(1.05)^(-(n-1)) ... + $100*(1.05)^(-1) this is called an annuity

When n = infinity this sum is called a perpetuity. And since its a limiting sum the formula is Size of payment / interest rate. In the above example it would be $100/0.05 = $2,000

Ok so all I did with the world of warcraft thing was figure out the NPV of being able to play the game on Blizzard's servers forever. I used the Australian monthly fee of $30 in perpetuity (being able to play whenever you want)

Which is ($30*12)/0.05 = $7200

I did not take into account the up front payments (which would just be tacked onto the final answer), nor considered the actual rate of interest cause 5% is a good expected value, and I did not make it into an effective monthly rate cause the effect would be minimal.

Above average trolling.

 

[Emotional Vampire]

What are you saying, this guy's 100% right.

Ten bucks you don't have on your account will mean millions of dollars of loss one billion seventy three million six hundred five thousand twenty nine years in the future.

 

[Martin]

What cult is this "ever" guy a part of ? I want in.

 

[Secretninja]

Your doin it wrong bro. Your message is supposed to be real short. That way, you can make a bunch, and people might read em.
This tl:dr bullshit gets a 0/10

 

[Monocause]

I've got to read a couple of studies on the appeal of MMO's. Curious if my intuition is correct.

 

[mediocrepoet]

I think ever forgot that the subscription can be cancelled whenever you're too busy or get bored of the thing which creates an effective limit on the cost of it all. In any case, I'd be curious to see how much money you should make before you sign up for that $80000 phone plan or pay $23029847 in rent* because clearly I can't afford to exist.


* All figures have been scientifically calculated assuming I subscribe FOREVER, you idiots.

 

[Gay-Lussac]

You know, there really is no reason to curse when asking questions

I liked this but the rest was tl;dr

A for effort though.

 

[Michael Ellis]

:S

Well firstly I wasn't really concerned with how much you would have paid already in absolute terms, I'm more concerned about how much you would have to pay to be able to play on Blizzard's servers forever, which I see as akin to buying any other game (i.e getting the ability to play the game the way its meant to be played whenever you want)

To put it as simply as possible I was giving you the amount of money you'd have to pay to be able to play world of warcraft for an infinite number of years, which I see as the same as actually owning the game, hence the price of the game

You don't seem to be familiar with some of the basics of financial calculation. Not everyone is thats ok.

I'll help you out.

First you need to know what are interest rates and where they come from: An interest rate comes from the market for future money, what does that mean? It means that if I were to tell you hey you can have either $90 right now or I will give you $100 in ten years, you're prolly gonna take the $90 now. This difference is the discount rate or the interest rate. Interest rates also effect capital pricings, neutral profits, are influenced by money supply factors in modern economies blah blah blah but the gist of it is that future money can be bought by a smaller amount of present money.

Now when you calculate how much present money is worth in future money you say something like $100*(1.05)^2 to get the value of $100 today, 2 years from now at a 5% rate.

To get the value of $100 in two years today you do something similar: $100*(1.05)^(-2). This is called the Net Present Value, or NPV

Now, when you want to figure out lets say the NPV of $100 paid to you each year for the next n years you are adding $100*(1.05)^(-n) + $100*(1.05)^(-(n-1)) ... + $100*(1.05)^(-1) this is called an annuity

When n = infinity this sum is called a perpetuity. And since its a limiting sum the formula is Size of payment / interest rate. In the above example it would be $100/0.05 = $2,000

Ok so all I did with the world of warcraft thing was figure out the NPV of being able to play the game on Blizzard's servers forever. I used the Australian monthly fee of $30 in perpetuity (being able to play whenever you want)

Which is ($30*12)/0.05 = $7200

I did not take into account the up front payments (which would just be tacked onto the final answer), nor considered the actual rate of interest cause 5% is a good expected value, and I did not make it into an effective monthly rate cause the effect would be minimal.

I thought I had seen it all on the Codex. Infinite racism, bigotry, and general immaturity. But now this. Someone giving a DCF lecture. And serious about it. A new low for the Codex.

 

[vazquez595654]

probably just went through finance 101. It's actually typical for people to relate, seemingly unrelated concepts and ideas to whatever is going on in their life at the moment. Hence, dorky college kid taking a finance class for his business major destined for middle management, spewing it all over an rpg forum.

 

[Azrael the cat]

I think ever forgot that the subscription can be cancelled whenever you're too busy or get bored of the thing which creates an effective limit on the cost of it all. In any case, I'd be curious to see how much money you should make before you sign up for that $80000 phone plan or pay $23029847 in rent* because clearly I can't afford to exist.


* All figures have been scientifically calculated assuming I subscribe FOREVER, you idiots.

Uhh...even reducing that to a per-week figure, those prices are SHITE! Why fork out $23 mill in lifetime rent when you can buy a decent house in Aus for about $500,000? Mortgages can be paid over time too, you realise

 

[Mangoose]

"I mean yeah sure you can say something like well the average consumer is only looking to rent world of warcraft for four of five years where the NPV is something like $1400 (Australian pricing yet again, and I didn't actually bother calculating this thoroughly or anything) but thats still a lot more than your average game, especially considering when you buy your average game you bought full ownership of it and not just rent for five years."

But do you play your average game daily for five years? It would be more accurate to compare the cost of playing WoW for five years to the cost of all the average games a non-MMOer would buy in five years.

 

[Nael]

What you all are forgetting is now that this chink has achieved such a great feat, the dwarves will come and claim him as their champion to go and fight in a parallel universe. Where he will be eaten by orcs. What a brave and noble chink.

 

[Azrael the cat]

"I mean yeah sure you can say something like well the average consumer is only looking to rent world of warcraft for four of five years where the NPV is something like $1400 (Australian pricing yet again, and I didn't actually bother calculating this thoroughly or anything) but thats still a lot more than your average game, especially considering when you buy your average game you bought full ownership of it and not just rent for five years."

But do you play your average game daily for five years? It would be more accurate to compare the cost of playing WoW for five years to the cost of all the average games a non-MMOer would buy in five years.

2 potential comparisons I could see as relevant for calculating value:
- cost per minute/hour played
- cost per minute of having fun.

The first measure certainly improves things - you pay la ot for MMORPGs but for huge amounts of content. Thw 2nd is the downfall: that way too much of that time is spent grinding (not exp these days) but rep for quests/loot, grinding 'simon says' raiding, sitting on ships, mounts or trains that get old quiick, travelling between areas (was good when everyone was focussed on PvPing enemy that dared enter their continent/areas in order to do instances, compulsory warlock shards grind, hunter mining-for-bullets grind

 

[Fuck_The_Banks]

Nobody's done it yet.....

http://www.youtube.com/watch?v=-DCCr9nDJYs

Hello everyone.