[Malorn]

I know it seems counter-intuitive, but free play actually brings in more revenue because not every player plays for free. Some will, but others who are used to a subscription and want the extra perks will pay and sustain the game. Players who start free to play don't always stay that way and may start paying a sub or use the store, etc. The main reason f2p does this is because it makes the game more alive by bringing in more bodies. MMOs live and die with their playerbases. F2P gives a huge playerbase, if even 1/3 of those players pay it can still be more than a sub-only with much smaller player base. But the smaller playerbase can easily turn into a dying game while the f2p model keeps the game healthy and growing.

See this video for more details about why its good and where it can go wrong:
http://www.escapistmagazine.com/vide...rotransactions