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Faylen Sol

Faylen Sol

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You do understand how the stock market works and how owning a chunk of shares doesn't mean you receive a paycheck from the company, right?
Just because IVP owns 55% of the shares doesn't mean they get to line their pockets with Jagex's profits. They don't receive a paycheck or any royalties.
Please lrn2economy Proud member of
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19-Jul-2012 22:46:35

[#4VU7PXU6T]

[#4VU7PXU6T]

Posts: 1,765 Mithril Posts by user Forum Profile RuneMetrics Profile
> Faylen Sol posted:
You do understand how the stock market works and how owning a chunk of shares doesn't mean you receive a paycheck from the company, right?

Just because IVP owns 55% of the shares doesn't mean they get to line their pockets with Jagex's profits. They don't receive a paycheck or any royalties.

Please lrn2economy
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I don't think you understand how IVP works. In a normal company, the investors only get to sell their stock when they feel like they have made enough profit from flipping it, or if the company is going to go downhill. Normally, the company does not need to listen to the investors at all, since the investors are not a part of the company, and only buy and sell stocks. In Jagex's case, IVP owns 55% of the stock, and as such they technically own the company. This way, they can place their own staff onto the Jagex board of directors and control the company.
The venture capitalist who owns a majority of the company has the ability to enforce their own rules over the company, including regulation over any loans they take, any raises people get, and any decisions are made. IVP is a "venture capital" firm, meaning that it runs off loans. If it cannot pay of the loans it took to buy Jagex, then it will be in severe debt, so in order to do so, it has the ability to force it to milk out as much money as possible, and collect any profits via its board of directors, dependent on the type of contract they had Gerhard sign.
~Bromato

19-Jul-2012 23:04:51

SsVivid

SsVivid

Posts: 1,776 Mithril Posts by user Forum Profile RuneMetrics Profile
"Thanks for charging money for the cool new RPing equipment, guys - I appreciate that."
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This reminds me of a post I read somewhere, I don't think on this thread, that explained that the cosmetic costumes had extra charge fees because extra effort, money, and planning went into them. So, the microtransactions prevent people who aren't interested in that sort of update don't have to shoulder some of the cost of creating that content.
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I get this logic, sure, but it's SO one-sided that it hurts.
If a special new item comes out that gives +2.5% bonus smithing XP, it will come out as a main content release. I couldn't care much less about getting mass amounts of smithing xp, but I still have to shoulder the cost of creating that item.
Whatever the next groundbreaking, super-stat, ultra-PvP item is, I have no doubt that a lot of special thought, design work, and effort will go into whatever becomes the Mage/Range equivalent of the godsword. However, despite the fact that I have little to no interest in superweapons, I will still have to shoulder the cost of creating that item.
What I'm saying is, this is not a fair approach. Skillers and PvPers don't have to shoulder the costs for my special items, but I have to shoulder the costs of theirs AND pay an additional fee (that I can't afford, so will have to go without) to get fancy new releases for MY corner of the game?
The only way to make this fair is to segment ALL communities into specialized microtransactions (Skillers, PKers, PvMers, Questers, Clannies, RPers, etc) and charge each group only for the content they want to use, or to charge NONE of the groups for the content they most want to use. Then, since at least at the moment selling XP and selling good statted equipment is out of the question, you tell me where that leaves us.

19-Jul-2012 23:14:11

Faylen Sol

Faylen Sol

Posts: 3,393 Adamant Posts by user Forum Profile RuneMetrics Profile
"I don't think you understand how IVP works. In a normal company, the investors only get to sell their stock when they feel like they have made enough profit from flipping it, or if the company is going to go downhill. Normally, the company does not need to listen to the investors at all, since the investors are not a part of the company, and only buy and sell stocks. In Jagex's case, IVP owns 55% of the stock, and as such they technically own the company. This way, they can place their own staff onto the Jagex board of directors and control the company.
The venture capitalist who owns a majority of the company has the ability to enforce their own rules over the company, including regulation over any loans they take, any raises people get, and any decisions are made. IVP is a "venture capital" firm, meaning that it runs off loans. If it cannot pay of the loans it took to buy Jagex, then it will be in severe debt, so in order to do so, it has the ability to force it to milk out as much money as possible, and collect any profits via its board of directors, dependent on the type of contract they had Gerhard sign.
~Bromato "
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However possible it may be, we as the players don't know what's going on behind the scenes. What you've claimed is purely speculation. You assume what's going on and assume that this is all going to line the pockets of IVP rather than pay for newer better content. I'd believe that this was all going to line the pockets of IVP if we stopped getting new content all together after EoC release or we see very limited content outside of Micro-Transaction based updates.
So long as we get regular updates after EoC (As I know that's probably their main priority at the moment so I wont doubt if we see little content updates until it's release) I am fine with the Micro-Transactions (so long as they do indeed stay Cosmetic).
Until that day, I am fine. Regardless, we wont be able to stop it if it is to come. Proud member of
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20-Jul-2012 00:46:14

Echned Zekin
Jun Member 2012

Echned Zekin

Posts: 2,722 Adamant Posts by user Forum Profile RuneMetrics Profile
Is Institutional Venture Partners censored?
Guess not, what was being censored in your post then?
Doesn't matter I guess, I support either removing or severely altering the shop.

20-Jul-2012 00:58:23 - Last edited on 20-Jul-2012 00:59:32 by Echned Zekin

Saad
Nov Member 2007

Saad

Posts: 822 Gold Posts by user Forum Profile RuneMetrics Profile
I think most people are missing the importance of your second point.
The updates themselves may not be all that bad, but the precedent that they are setting is absolutely disastrous. Back when Bonus XP weekend was created no one would've been able to see that we would've been able to buy XP via SoF just two years later. Solomon is just another addition on that trail and the route that this is going isn't good for the game.
At this rate every new update will be treated like DLC and people will be expected to buy that on top of their monthly subscription.

20-Jul-2012 01:01:47

[#4VU7PXU6T]

[#4VU7PXU6T]

Posts: 1,765 Mithril Posts by user Forum Profile RuneMetrics Profile
@Faylen, I'm against all types of microtransactions that add onto my monthly fee. It does not matter if it is only cosmetic, as you could have seen if you read the second post.
@Echned and Saad: Thanks for the supports.
BUMP
~Bromato

21-Jul-2012 17:25:48

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