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With the improvements available you can still make enough dust to make the inflation a non-issue and there are a few techs to reduce inflation on your empire.
Edit: If you play on the harder difficulties where the AI gets FIDSI bonuses you may get impacted a bit more harshly by inflation early on.
It's been complained about since early access, people have gone into details of the economic system and explained why it doesn't work at all, but it's been ignored. To be completely honest it's the main reason I have trouble picking up the game again, I started a game as vaulters on endless speed and was at 50% inflation by like turn 50 and I just shut the game off.
The AI was not stellar in ES1 either.
This. On top of it it seems they balanced buildings and ship upkeep with inflation in mind. In my current vaulters game at turn 89 have six systems, every system has at least 4 planets and around 15 pop, and I built xenotourism agencies in every system, plus some dust planetary specialization and careful sweeping. EVERY single system is losing dust every turn, since the improvement's upkeep is balanced around inflation every dust generating building is virtually useless. You are forced to either trade, sell luxuries or both of them.
Trade is effected by inflation which is why it can generate so much income, as is the sell price for luxuries. Both of those boost inflation and are boosted by inflation creating a self-feeding spiral of inanity, where a single trade route is generating millions of dust and 999 luxury resources per turn (with those 999 luxuries selling for millions more), while all of your systems are bleeding thousands of dust per turn with every dust improvement built and every step taken to maximize dust income.
It's one of the dumbest systems I have ever seen implemented in any game I have played. It's convoluted and self-defeating, causing and feeding into the very problem it seems it was attempting to solve. Lack of dust isn't an issue in this game, early on you get ridiculous amounts of it from minors, and then trade routes will sort you out the rest of the game, but every system based dust improvement or specialization is absolutely garbage. This makes dust effectively a useless resource, it's trivial to get all you need, but attempting to get any sort of excess in order to do anything beneficial with it (like buyouts) is futile.
If I'm not wrong you play on slow game speed. My experience differs (normal game speed), depending on how long I play this game (if I aim for victory conditions I don't experience this crazy behaviour- other experience if I aim for a long lasting game ignoring/preventing victory to hit). In case you expand the total (intended) playtime (sure you do - by free will) you get the experience you write about. Correct me, if I'm mistaken.
Do you have a current game where trade companies are doing this? They were nerfed awhile back. In my current Vaulter game I have a max 3 mature trade company HQs that produce just a little over 1000 dust per turn and maybe a max of 5-6 of luxury resources. By mature I mean say level 20 or so.
Trade route numbers are sane and fairly balanced at low inflation numbers. The issue is around 5x inflation most of the balancing breaks, and above 10x inflation it's just awful. The last trade route nerf I am aware of was for the 1.0 release and it didn't have any effect on this issue whatsoever. I haven't seriously played the game since then, I've been reading patch notes and booting it up for a few turns now and then, but the bugs and issues always turn me away before I get that far in a game.
Gamespeed has an effect on inflation rates so on slower speed like I usually play on inflation actually goes up quite a bit more slowly. Here's a screen somebody took shortly after the 1.0 release with x42 inflation by turn 133 on a faster game speed.
https://steamcommunity.com/sharedfiles/filedetails/?id=928995833
Edit: Target locked did have more trade route nerfs, but they again weren't related to the inflation mechanic so didn't really change anything.
That screenshot might be a bug. Here's one of my saves with 50X inflation and the trade companies only make roughly 2000-5000 dust each.
http://steamcommunity.com/sharedfiles/filedetails/?id=1286065299
Edit: Here's one from my brand new Vaulter game (as in not started on any previous patch version)
http://steamcommunity.com/sharedfiles/filedetails/?id=1286070541
As you can see 230 turns in (normal speed so adjust as needed) and inflation has only gone up 15x. The trade companies don't make much compared to my systems. Also 3 is the max for HQs now with some racial exceptions which further reduces the gain and inflation. I remember trade HQs used to baloon out really fast but since the patches I havn't seen any of it on new games.
I did notice something though. The tooltip for the inflation rate mentions it affects the trade companies, marketplace, and ship repair/upgrade. It doesnt' mention that the inflation rate affects upkeep (ship or building upkeep). I am wondering perhaps if it's a bug that it affects the city/fleet upkeep. If those were to just maintain constant value instead of inflating, things would be a lot more reasonable.