On microtransactions, Pardo says they would work for a game like Guitar Hero, where you just pay for more songs. He's wary of applying microtransactions to a game like WoW because they cheapen the experience; people show off the armor and weapons they win in the game, and being able to buy those items would ruin the game. Pardo also thinks that ad-supported games primarily work for subjects where players already expect ads, like car racing.
Will gamers play titles that cross Pardo's clear distinctions? Acclaim is considering an ad-supported fantasy MMO that would tell gamers that Coke just sponsored their armor upgrade. Would you play that kind of title or rather pay for a game without banners or pop-up ads?