In this week’s and ninth developer diary for Cities: Skylines 2, the development studio Colossal Order goes to work in the usual comprehensive manner and deals with the economic simulation and the associated production. This article is initially about how the economy works, which according to Colossal Order has developed further compared to the first part and is therefore also more complex. But it shouldn’t be too complicated, as the developers emphasize at the beginning, since the focus of the game is on city building, the “heart” of Cities: Skylines (2).
The Economic Cycle
The economic system in CS2 is modeled after real-world models and is designed to balance itself in most cases to aid players in the early stages of their city building. There is also support in the form of government grants, which can include unemployment benefits, for example. As the city becomes more prosperous and the economy boosts, government grants will gradually diminish, allowing players to take the reins into their own hands.
In the economic cycle in Cites: Skylines 2, a resource flow is formed between three actors: households, companies and city service providers. “Households spend money to buy resources and pay rent, businesses buy resources and convert them into other resources, which they then sell to other businesses or customers. Businesses also pay rent on their building, which is used when calculating their profit “Certain city service providers also consume resources and this expenditure is added to their monthly upkeep,” explains Colossal Order.
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The behavior of companies can also be adjusted by raising and lowering taxes. With high taxes, for example, overproduction could be prevented, with low taxes production is boosted and the city becomes more attractive for other companies that then settle there. Colossal Order also addresses money sinks, which take the form of rent, import payments, corporate profits, and player payments, and take money out of the economic simulation. Cash sinks are offset by cash sources, which the developer says can be paid rent, corporate profits, export earnings from businesses and city services, tourists, and government subsidies to the city and individual citizens.
Households, companies and the economic panel
In the following, the developers explain in detail what the needs, worries and needs of the different actors in a city are (e.g. the choice of location or the required staff) and how their actions affect the economic simulation. These actors are grouped under four categories: households, industrial companies, commercial companies and office companies. For example, households are looking for housing and jobs, industrial companies need resources and trading companies want to sell their products. You can find out more about this in the current developer diary.
As with many other features in Cities: Skylines 2, there is also an overview menu for the economic events in the city, a so-called economic panel. From there, players can take a deeper look into the finances, credits, taxes, service budgets, and production of various resources within the city. With the tools and information provided in the economic panel, players should ultimately be able to influence the various parts of the simulation and plan and develop their city.
Source: Colossal Order
