I'd have to slightly disagree with the others here who said the effect evens out. I had my most profitable weeks (in US$, not just in L$) when the L$ was trading at its peak around 350. From my (admittedly limted) experience, when L$ are cheap and easily come by, people spend them more freely, perhaps even overspending a bit in terms of US$ value.
Of course, business sometimes has good and bad weeks. It could have just been a fluke that I made so much more then. But for me, business was definitely up when the L$ was trading so cheaply, even when measured in US$ terms. It didn't even out -- I made more real money then than I have in the past couple weeks. Sure, each L$ is worth more now, but I'm making less of them. People said this move would make it easier to pay my tier -- I fail to see how.
The real danger is deflation. As long as there is at least mild inflation, it makes sense for consumers to buy now rather than later. But when you enter a deflationary period, it makes more sense to wait than buy now, since you'll be able to buy more later with the same money. An economy without some inflation is in a very bad state. The in-game economy was doing very well until a few weeks ago, but right now it's adjusting to recent changes. I'm hoping it gets back to normal soon. Deflation may be great for someone sitting on a stockpile of cash, but it sucks for anyone trying to make money rather than sit on it.
Of course, business sometimes has good and bad weeks. It could have just been a fluke that I made so much more then. But for me, business was definitely up when the L$ was trading so cheaply, even when measured in US$ terms. It didn't even out -- I made more real money then than I have in the past couple weeks. Sure, each L$ is worth more now, but I'm making less of them. People said this move would make it easier to pay my tier -- I fail to see how.
The real danger is deflation. As long as there is at least mild inflation, it makes sense for consumers to buy now rather than later. But when you enter a deflationary period, it makes more sense to wait than buy now, since you'll be able to buy more later with the same money. An economy without some inflation is in a very bad state. The in-game economy was doing very well until a few weeks ago, but right now it's adjusting to recent changes. I'm hoping it gets back to normal soon. Deflation may be great for someone sitting on a stockpile of cash, but it sucks for anyone trying to make money rather than sit on it.
Do you believe there is mild inflation?
What you are saying is this.
When people get more Lindens per dollar, it means more purchases at your business. Therefore, you would want Linden values to drop so people would get more Ls for their dollars, and therefore purchase more of your products. That makes great sense.
No matter what there is infinite room for infinite profit for this reason:
You pay a set fee every month.
You have the ability to make unlimited items for sale.
There is really no way to lose because there is no end limit to resources for the creation of supply.
The only threat is players getting access to products for free which is very likely. But no matter how much free products there are available, there will always be players that are just looking for an excuse to spend their money.
In terms of buying and selling land, dropping L values can do you great harm. Even if the player gets more Ls per USD, a 40,000L property is a 40,000L property. You have to set your prices according to compete because if you raise prices, you might end up sitting on the land for an extended period of time.
