Theory Galore: The system is balanced due to USD vs. SEK value?

[Joat]

I had some thoughts about this lately. Since USD is so weak against SEK,
do MA balance system due to this?
They do lose a lot because of this.
Even thou' it's positive for someone from f.ex Sweden to depo, they might
get less depos done in the long run, if people has to lose more, due to weak
USD. (System is balanced so people do lose more, and hopefully depo more.)
I f.ex feel that, even thou' USD is cheap, I lose my PEDs way to fast ATM,
and that makes me think twice before I do another depo. (Even thou' my
depos arn't that big ATM. )
So what do you think? Give me some thoughts.

[True Juan]

OMG, another one (this is like the 5th thread about the falling $ and its pissing me off - sorry for the expression, im having a bad day)

[Harvest]

Originally Posted by Joat

I had some thoughts about this lately. Since USD is so weak against SEK,
do MA balance system due to this?
They do lose a lot because of this.
Even thou' it's positive for someone from f.ex Sweden to depo, they might
get less depos done in the long run, if people has to lose more, due to weak
USD. (System is balanced so people do lose more, and hopefully depo more.)
I f.ex feel that, even thou' USD is cheap, I lose my PEDs way to fast ATM,
and that makes me think twice before I do another depo. (Even thou' my
depos arn't that big ATM. )
So what do you think? Give me some thoughts.

I vote "Yes"

Originally Posted by True Juan

OMG, another one (this is like the 5th thread about the falling $ and its pissing me off - sorry for the expression, im having a bad day)

Cheer up ...its only a thread lol.

[True Juan]

Originally Posted by Harvest

Cheer up ...its only a thread lol.

Yeah I know, just a crappy day, thats all

[onyx oZ Zombie]

I honestly can't believe another thread along these same lines has been posted ... PLEASE make an effort to search out one of the other 8 threads on this subject, and add your thoughts to THAT thread instead of creating a new one ... geez

[Legion]

I actually dont think MA cares at all that the $ is going down.

[jdegre]

i fully agree with that theory. MA financial results are _heavily_ affected by the $ free fall (that's a fact), and i'd bet (that's a belief) that the system has a number of master parameters that regulate the whole system dynamics to compensate for the $ exchange rate influence.

[aridash]

incorrect conclusion.

Player deposits are not fixed from MA point of view, ie if i put in £50 a month that isnt likly to change, but as the £/$ rate increases that means more $ for me and therefore more PED income for MA. So MA gain more sales in the current exchange rates.

since they make a profit, their income is greater than their outgoings. their outgoings are in Euro and SEK (apparnetly GBP but i dont follow that), so as long as the depsoits from those currencies is equal or more to the outgoings, they are making more money overall.

[jdegre]

Originally Posted by aridash

incorrect conclusion.

Player deposits are not fixed from MA point of view, ie if i put in £50 a month that isnt likly to change, but as the £/$ rate increases that means more $ for me and therefore more PED income for MA. So MA gain more sales in the current exchange rates.

since they make a profit, their income is greater than their outgoings. their outgoings are in Euro and SEK (apparnetly GBP but i dont follow that), so as long as the depsoits from those currencies is equal or more to the outgoings, they are making more money overall.

well, MA apparently drew a different conclusion than yours, since they stated in their financial reports, in HUGE letters, that their results had been affected VERY adversely by the $/SEK exchange rate.

[alh]

Originally Posted by jdegre

well, MA apparently drew a different conclusion than yours, since they stated in their financial reports, in HUGE letters, that their results had been affected VERY adversely by the $/SEK exchange rate.

Yeah, they _sales_ did decrease a bit, so the "non-US people will deposit more"-theory doesn't hold.
Their net sales (amount of ped deposited) did increase about 9%, but the $ lost 18% of value, so sales did decrease.
And does ofcourse look bad in the financial report, and has to be mentioned.

But, they still have one positive factor they did not mention, and this is about the money they "guarantee" for the universe. This they claim is the ped value of the universe. This value they have to guarantee, they can't do what they want with, and is a - post on the balance sheet.
But, since they guarantee this in $, the number of SEK (the currency in their balance sheet) has decreased also with 18%.

Since this value is surely a lot greater then this years sales, they have in total gained money.

Then, they have spend a lot of money on R&D and sales, and this is the big - that really affected liquidity, and not the decreased $...

But I'm just an amature, what do I know...

I just think it makes sense

Please prove me wrong if you think I am, I love to be proved wrong, thats how you learn