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EVE Online News - CCP Comments on Iceland's Economic Woes
Posted by Keith Cross on Dec 23, 2008 | 8 comments in our forums
In a recent article on Iceland's ongoing economic troubles, CCP's resident economist Dr. Eyjolfur Gudmundsson outlined the current problems and potential impact that the devaluation of the nation's currency could have on the company.
On three shiny floors of a former fish factory is CCP, a company best known in computer gaming for Eve Online, which has 300,000 participants all over the world - as many inhabitants as Iceland itself. However, restrictions on access to foreign currency for individuals and businesses and on foreign investment into Iceland are making life difficult. "To make new games, we need foreign investors," says Eyjolfur Gudmundsson, formerly an assistant professor at the University of Akureyri, who supervises Eve's virtual economy. "The present currency restrictions are putting us in a straitjacket. We are in talks with the government, but if we can't let capital in, we might be compelled to leave Iceland, even though this would be against our wishes."
At least CCP still generates income. For the auto industry, sales have plummeted 93% compared with the same time last year, according to RUV state broadcasting. Icelanders simply can't afford foreign models. But foreigners can. Haukur Baldvinsson, a car salesman, says that his staff have taken to snooping around the streets for foreign imports, contacting the seller and then flipping the vehicles on to foreigners.
Read more here.
wow, didnt realise it was that bad in iceland.
its not doing too bad here in Australia; ~4.5% inflation ~4.5% unemployment ~7% intrest rates(and falling), They should come here :p
but seriously, i've never experienced a hard recession in my 21years of life, there was one in the early 90's but didn't seem to affect my family much, they still held jobs and their home. i cant imagine what it would be like if our economy collased over a few months.
Its amazed me for a long time just how small the population of Iceland really is. The area I live here in Texas has around 6.5 million people. Heck, the highschool I attended had 3,000 kids in it.
I guess the small population made it a litmus test for the financial markets.
I would love to visit Iceland, but not because of any exchange rates :) I think it looks like an interesting place to visit.
It's hard to believe what has happened, really. I was there in Reyk for CCP's EVE Fanfest in 2005 ... just over 3 years ago ... and the country was gleaming, wealthy and expensive. How quickly things change.
I don't understand why Iceland's economic issues effect CCP. Isn't EvE Online making a profit? Doesn't CCP's revenue come from around the world and therefore not dependent on Iceland?
It hurts them because the government is making the situation WORSE by basically "calling in" foreign currency and is trying to force CCP to hold all it's assets in worthless ISK (in game ISK is probably worth more than real ISK right now).
CCP can't operate that way, given that most of it's income is in Euros or Dollars.
It is shocking, as Iceland has been an example for many years on how a little country could be successfully managed. I learn Icelandic as foreing language as this country is my fave one and i'd like to visit it asap. It's sad that is now in such a problematic economic failure. I hope CCP is not hurted by this and that government allows them to get foreing investors to push EVE straight forward without any woe....
Wow I didn't know Iceland was that bad...
Though probably the most suprising (now that I look back on it it should have been obvious) thing is that CCP & Eve actually keep a credible economist on staff to advise about ingame economies and make press releases about the developers home country's economy 0.o;;
Iceland is one small beautiful country with a very small sized population.
Things in Island has gone very fast, the last years!
They have been building all the way up to the skies and further on,
their success wouldnt take an end!
so now it's, sorry to say, one BIG catastrophe to Island
They have climbed very high, but now they have one VERY deep fall !
I really hope that EVE-online can stay back in island & help their country out, with their foreign income!