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Since out last update, players have been offered the 44% company upgrade which has started to play out in the market. Given that the Admins can change the game's economics at will (see: Rocket Factory, gold sales, company upgrades), there are a few constants we must keep in min😛 first and foremost, a significant number of players will overreact to any change. As an example, when the eUSA had it bonus reduced from 100/100 to 60/80, the wage market dropped 10% overnight only to slowly crawl back in the next 4 days. How does this play out this week?

Raw Materials move in opposite directions. Food has become the red-headed stepchild of the eEconomy. Prior to Rocket factories, it was nearly impossible to buy a Q1 food factory for less than 9.99 gold, and Q1 weapon factories routinely sold for under 9.95. Currently there's 14 Q1 food companies on sale for 9.5 gold (or less) while the cheapest Q1 weapon is 10.10 gold (really? One can create a company for 10 gold). Food raw materials follow this disinterest in food companies and prices slump with inter-day lows at .03. Weapons raw jump on the increase in weapons production, driving the inter-day to .15 before settling back. The Raw Material Index closes at 31.11 up 2.22, borne entirely by rising weapons raw materials.

Food slumps for the week, down by at least 8% at each quality level with Q2 dropping 14%. The Food Index falls nearly 7 points to 62.83, a record low for the Index. Food has been in a steady downward trend since the introduction of the Rocket Factory, a move that begs for a similar use of food output. Q1 food was holding steady at .38 for several days. Since the Rocket Factory intro, its fallen off to .33. Likewise, on the other end Q6 was holding at 2.49cc and has slipped to below 2.20cc.

Weapons spike up with the Rocket Mission and then full-on retreat once the 44% upgrade enables more players to move into the former lucrative Q3 & Q4 production facilities. What once cost 72 gold (buying a Q3 Weapon company on the market) one could now do for less than 50 (create at 10 gold, 44% upgrade it for 39.2). For the 10-day period, the Weapon Index jumped from 107 to 149 (at the Rocket Mission) only to crash back to 93.38 after the influx of new weapon companies.

Wages make a strong showing for the week and more employers come on the scene looking for fat profits. The Wage Index rises 22 points closing at 132.88.

Gold continued its slump, briefly closing below 2000cc before rallying on a company upgrade, at least briefly. The Gold Index nonetheless closes down 26+ points falling to 122.89.

The Index:


The 1600 AU Index
Based off of the amount of gold a player could earn in a year by working at market wage, selling 20 weapons, 200 food (both Q6) and 1750 raw materials (split 50/50 food/weapons) the 1600 AU Index continues to improve despite the slackening price of Q6 food. The 1600 AU Index rests at 274.81 up 60 for the period.

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Wages are at their highest levels since the 1600 Index starting tracking. How does this effect producers and can they sustain these levels?

First a look at the 5-day moving average graph for wages.

After holding steady for nearly 30 days, wages dropped when the eUSA bonus' were reduced on Day 1674 and then recovered as producers noticed they were still making money, then took off like a rocket with the introduction of rocket factories (apologies for pun) and then pushed higher as more employer slots opened up with the 44% upgrade.

Is this a phenomenon limited to the eUSA. A picture is worth 1000 words. SO is a chart:


From a net-wage perspective (ie: amount a player actually gets once they are taxed), the high bonus countries rise to the top: eBrazil, ePoland, eUSA all enjoy 100% bonuses on weapons and all pay about 330cc net. Dropping down a bit eChina also enjoys 100% bonus and has a high income tax like the eUSA, but pays 60cc less. At the lower end of the list eIreland continues to lag in wages even behind fellow 20% bonus Germany by 50cc

The chart of weapon producers profits follow. This assumes market wage and all raw materials purchased at market price. It was also pointed out to the 1600 Index that the charts should take into account the VAT, which the 1600 Index has done.



Looking at the above chart it can be noted that Q1 & Q2s are self supply - hiring a worker doesn't make money. Q5s moved into a loss situation until the rocket factory mission pulled them out. Then the combination of rising wages, rising raw material prices, and slackening market prices pushed them into the red. It no longer pays to hire new employees at Q5. Q3 was still livin' large it until the 44% upgrade. As new owners pushed into the Q3 market (as noted above the buy-in for a Q3 was reduced from 72 to 50 gold), prices tanked coupled with a stiff jumps in both raw materials and wages pushed Q3 into the loss ranks. Q4 producers face the same issue as Q3. Their buy-in was reduced from 162 to 105 gold (ie: one can buy a Q4 company on the market for 162 gold, but now can create a Q1 and 44% upgrade-sale it to a Q4 for a total gold outlay of 105), prices dropped and wages jumped. Q4 is nearly at break-even. Only Q6 makes a profit although for the first time, its profits have dropped below 95cc per employee.

So if weapon manufacturers aren't getting fat wallets, what are food manufacturer's getting?

Chart!

Note that on day 1689, the eUSA went to 100% bonus on food, hence the jump in profits for Q6. Although the Laws of Irony compel me to put "profits" in quotes. Other than that slight bump, food producers are getting squeezed completely out. Market prices have dropped considerably, wages have gone sharply up even as raw materials soften.

It no longer pays to hire workers at any food company. QED.

The graph of Q6 profits

Quite the divergence.

And since I have it, the formerly marginally profitable Q5s

Food is just getting hammered.

Lets reinforce the drop in prices on high-end food (Q5 & Q6) with a couple of 5-days:

Lowest prices ever.


Lowest prices ever x2

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Gold

A revisit of the gold chart with overlays of sales, etc.

A very typical spike in gold prices at the intro of a 44% sale, something we have seen with prior upgrade sales.

And the 5-day moving average of gol😛

Interesting to see if gold can push past the 2000cc barrier. It looks like it wants to.





It has been the goal of the 1600 Index to do a Index update each weekend. Unfortunately, the entire crack staff of the 1600 Index spent Sunday morning in hospital with Benign Positional Vertigo. 12 hours of the world spinning rapidly in a clock-wise direction. We're most better, thank you.


Note: prices are reflective of a percentage of Day 1600's price (Hence the "1600 Index"). In other words if an index is quoted at 88, that days price is 88% of the price on Day 1600. Except the 1600 AU Index which represents an amount of gold one can buy given market conditions as noted in that section.

Methodology on prices: prices are taken at 3:00 eRep time. The price is the average price of buying 1,000 Raw materials, 500 Food, 100 weapons (at each quality level), and 8 gold, plus the market wage less any fraction of cc (so 240, rather than 240.1). All qualities are standardized to Q1 (per hit or per health).

Sic transit gloria mundi