LotR Online's Free-To-Play Switch Tripled Revenue
Last June, Turbine made the decision to switch Lord of the Rings Online from a subscription-based business model to a free-to-play model supported by microtransactions. In a podcast interview with Ten Ton Hammer, Turbine executives revealed that the switch has gone well for the company, with game revenues roughly tripling. The active player base has also grown significantly in that time. Executive Producer Kate Paiz said, "This really echoes a lot of what we've seen throughout the entertainment industry in general. It's really about letting players make their choices about how they play."
Yes, allowing people to actually pay (and play) when they want to, and not be forced to feel like they HAVE to get their money's worth with a subscription system, is proven to be better for both the gamer AND the company.
Turbine does cash-shops properly. I play DDO, but I hear LotR is the same: none of the items you can buy for cash are particularly useful in the end-game. The Korean MMOs are different: cash and plenty of it is the only way to be competitive in the end game. But that turns off most US players, and the Turbine games don't use that model.
At least in DDO, most of the utility items you can buy for cash don't work in raids. The equippable items you can buy are nice when your first character is level 3, but are basically vendor trash items (still, when you're just starting off, paying 50 cents for a +2 sword or whatever can be attractive, but no one will be impressed by it). The main thing people buy is content, just piecemeal instead of subscription-based: a dungeon here, a playable race there.
Socialism: a lie told by totalitarians and believed by fools.