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Previous document: August 8, 2008
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Corp and Country Costs Status: Please read our response

Detailed Description:

As the added costs, fees, and overhead expenses are regularly added to the monthly operating expenses to corporations and countries, it is increasingly evident that to generate ANY profit margins has become virtually impossible.

Expenses such as the "General Cost of Government" and "Total Defense Cost" are ten times the cost of what they should be, when factoring in total population and size of the defensive military. A defense at the very bare minimum is still cost prohibitive (in the red on the balance sheet). Any Nation would be bankrupt at the games financial calculations. Corporations can not produce a profit and the costs continue to increase with new costs such as "Fixed Property" and "Site Maintenance". A Corp in the real world would go belly-up very quickly.

A full accounting review and clarification of overhead costs needs to be conducted. The health and education costs are off the chart vs revenue generated. I know in the real world, property and school taxes always meet or slightly exceed costs. I write those checks every year. When compared to the real world mil rate, the education costs are 375% higher than normal in game. This is clearly an error on part of the game developer's formula calculations. Health costs are the same scenario, spending thousands per person per game month per total population (employed and unemployed).

Please vote YES to request the game developers to reevaluate how corporation and country costs are calculated in the game. Thank you.

64 gamers voted for the proposal.
4 gamers voted against the proposal.

The proposal has been ACCEPTED.

W3Creative reaction:

First to correct a misunderstanding: The value of the game dollar is not comparable to a Euro or to a US $. Comparing numbers to the real world does not make any sense. We are however, as we have explained several times in the game news, reducing numbers. Both income numbers and costs.
The profitability of corporations is improved, not deteriorated. The cost increase, both in maintenance and fixed cost, is more than compensated by increased productivity and revenue.
Profits have increased and with these increased profits, also corporations values have increased.
Cost and profitability of some corporations will continue to increase. The effect of the fixed costs is felt mainly in corporations that are producing at low levels. Such corporations may suffer losses and bankrupt but corporations that are producing at very high levels, are extremely profitable.

Fully upgraded corporations may see costs increases but will remain very profitable while starting corporations have seen their profits go up strongly. Also this process is on going and will continue.
Countries that are even reasonably managed remain very profitable. The cost of the army, that declined from past levels, will decline even more.
In the long run, all costs and all income can be cut by a factor of 2 to 4. Having corporations make a profit of 50 to 80 B per game year is unrealistic.

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