RP adjustment in Oceania

Greetings summoners, I’m Mirko (MasterMirkinen) and I head up Riot Oceania. I just want to take a moment to talk to you about RP Prices. In an effort to ensure price equality on the server and respond to rising costs caused by recent economic shifts, we are adjusting the cost of RP in Oceania. This will result in a 13% RP price increase for Australian players. This change will take effect in two weeks on March 20th at 11:59PM Sydney Time. We are delaying the actual change in prices to give players one last chance to stock up before the change. Here are the new amounts of RP you will receive as of 21/03/2015 for credit cards **For Credit Card** BASE+BONUS=TOTAL 5 AUD/NZD - 520+0=520 10 AUD/NZD - 1040+60=1100 20 AUD/NZD - 80+170=2250 35 AUD/NZD - 3640+360=4000 50 AUD/NZD - 5200+700=5900 100 AUD/NZD - 10400+1700=12100 **For Prepaid Card** BASE + BONUS RP = TOTAL 10 AUD/NZD - 1100+0=1100 25 AUD/NZD - 2750+80=2830 50 AUD/NZD - 5500+400=5900 We want to be transparent in doing this and have provided some more context below: **Why are we increasing prices?** This will be our first price increase in almost two years, so why now? It really boils down to server fairness and rising cost due to economic shifts. We attempt to keep RP prices in relative balance, especially when on the same server. Back in October, the Australian dollar started weakening against the New Zealand dollar and it caught us by surprise. This depreciation has resulted in pricing discrepancies between the Oceanic countries. We monitored the situation for several months hoping that it would recover, but we are now at a point where a price change is necessary. Unfortunately, simply reducing New Zealand prices alone won’t fix this. Another factor we need to take into consideration is the exchange rate between local currencies and USD. Because a big part of our costs come from the US, where the dollar continues to rise, we need to consider prices relative to the US as well. Therefore, we have decided to raise prices in Australia to bring them back into balance with New Zealand and the US. **Are there any other reasons a price change can happen?** There are many factors that determine how we price globally. In this case, server fairness and costs due to currency were the primary drivers. However, we also monitor other factors such as inflation or substantial infrastructure investment. So far we haven’t felt the need to make changes for these reasons. **What about other regions?** When economic environments change to a point where it places regions out of balance, then we look to make adjustments. Recently, we’ve made adjustments to RP prices in Brazil, Turkey, Russia, Chile and Argentina, and today we are introducing changes to regions including Oceania, Europe and Canada. **Any impact on IP or existing content?** Nope. You can still purchase content for the same amount of IP and RP as before. **Does the change affect already bought prepaid cards?** It will affect the card from the changeover date, which is one of the reasons we’re giving players 2 weeks notice to redeem cards while the value of RP is unchanged. If you have any questions about this process please post them in the comments below! Posting here most frequent questions from you and the answers: **Does it mean that every time the dollar goes up or down we will have a change in the RP prices?** > No. There are many things that factor into pricing decisions besides just currency - such as interest rates, inflation, competition, costs, investment into League of Legends and parity across countries. At the same time, we don't want to create an artificial stock market for RP. It is not our intention to constantly change prices with relative movements in currencies and create a lot of speculation among players. Therefore we have decided to monitor the situation and to make changes only if currencies or inflation make significant long term moves. We don't take this decisions very lightly as evidence by the fact that we waited several months before making these chances here. **Why didn't you change the prices when the Australian dollar was stronger than the US dollar?** >Changing RP prices is not something we want to do every time there is a currency variation. We decided to make changes only if currencies or inflation make **significant long term moves**. If you look at [this graph](http://apollo-uploads-oce.s3.amazonaws.com/1425611690499/6-3-152-08-21PM.png), you can see the exchange rate of AUD and USD since we launched here in Oceania. When we launched, we positioned our prices slightly lower than the US because we were not sure where the dollar was going. Any time the currency went above that line, in OCE we paid a bit more. As you can see, it happened only once and for a short time. **Why is the US dollar even a factor for OCE prices?** >While we have a passionate local team here in SYD, it's important to remember that many of our costs are in US Dollars, which are currently trending strongly against most global currencies. Some of these increased costs will be offset by the price increases. Each region (OCE in this case) should be responsible for covering its own costs to publish the game (servers, community, etc), but all regions should contribute to the costs of developing the game (programmers, artists, etc). **As a purchaser of RP, it would be reassuring to know that Riot is investing in OCE though (infrastructure, community, eSport...)** > While community and eSport is probably easier to see, we are doing a poor job in sharing what we are doing in OCE on the infrustructure and connectivity front. We have done TONS of things to improve connection and even more are in the pipeline but we simply didn't inform you. Please have a look at this post from Agent Mindstar with some more information: http://boards.oce.leagueoflegends.com/en/c/announcements/MXv9uHnL-rp-adjustment-in-oceania?comment=0014000000000001 **Why don't you simply charge OCE players in USD?** >We actually thought about that when we launched but we believed that having prices in local currency would be more transparent for our players. Also, some more younger players, may not understand the difference with the international currency and think that they are paying a certain amount in AUD while they are paying that amount in USD (which would be a higher AUD) Basically we believe that having prices in USD would make our players unsure of the real cost they are paying. With today exchange rate for example you would see something like this: >5 USD 650 10 USD 1380 20 USD 2800 35 USD 5000 50 USD 7200 100 USD 15000 >with in your bank statement would appear like this: >6.423845 AUD 12.84769 AUD 25.69538 AUD 44.966915 AUD 64.23845 AUD 128.4769 AUD >We believe this is more confusing that keeping prices in local currency (which BTW, if you check today's exchange rate, OCE prices are still cheaper than the US$) BTW, even with today's increase, the prices in OCE are lower than in N.A.
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