4Game

I have seen many comments saying, "Battle Pass is not doing worst, because we are facing a global inflation/cost of living crisis".

As an economist, I would like to expose some opinions about this.

Inflation means the price of stuff is going up, on average. Some stuff is becoming more expensive, other stuff may be decreasing in prices, but on average it's going up.

Now, does this mean less or more money in the pockets of people? Well, it depends on wages. If average wages are growing more than inflation, then people have more money in their pockets even with rising prices. They can afford more.

Now, real wages have been growing since the pandemic, although that has begun to slow down recently. So, it is hard to say that people have way less money in their pockets right now. https://www.brookings.edu/research/tight-labor-markets-and-wage-growth-in-the-current-economy/#:~:text=Until%20recently%2C%20nominal%20wages%20have,changed%20in%20that%20time%20period.

But the main thing is: the Battle Pass price has remained the same. If everything else is more expensive, but the BP has the same price, then it means that the BP is relatively cheaper.

So, to think about how inflation => BP sales, you need to ask: I) are real wages down? II) is the BP relatively more expensive?

The answer to I) is "no/not much", and the answer to II) is "no, BP is relatively cheaper".

So, when it comes to inflation, it seems that it should be bolstering BP sales, not decreasing them.