Supply and Demand in CS:GO — A Case Study
CSGO is a decade-old game at this point, with a stable playerbase and a vibrant market economy. As such, it serves as a great example of what a mature game marketplace looks like, a model example showcasing classic economic effects that apply as expected in games. Examining game changes from 2015 (when this article was originally written), we can see demand shocks, substitution, and income effects in the wild.
Way back in September 2015, CSGO updated the game to tweak gun stats and introduce a new case (loot box) containing new gun skins. This had predictable economic effects:
Counter-Terrorist teams in CSGO have access to two main rifles — the M4A1-S, and M4A4. Historically, the M4A1-S was the clear favorite, so CSGO nerfed its power in September 2015. As a result, players shifted their usage towards the M4A4. Market demand for their respective gun skins shifted as well.
Curiously, the Cyrex price drop was not as sharp as the Asiimov, with a gradual decline over the following weeks. This suggests that players are quick to buy new gun skins for active use, but slow to sell off unused inventory.
