We talked first about Turbine's decision to introduce this hybrid model, something that was pretty ground-breaking at the time: "In a subscription model, you're leaving money on the table on two sides: those people that are not willing to pay [...] your minimum price, they don't sign up. Then those people who would maybe be willing to pay you more can't. That's the basics of why free-to-play with microtransactions is good.
This is obviously the marketing message, letting players sample at their own pace and not be constrained by a seven day or fourteen day trial, whatever it may be. Let them feel like they can come back without the pressure of having to come back a lot to justify their subscription.
This leads to the question [...] why do you still have subscriptions? It's for a different audience. Let's say you are a hardcore player [...], you don't want to be buying all the content and feel like you have to spend $200 today just to keep playing the content you've had access to before. So this lets us target two people: the hardcore player can pay one low monthly fee and get unlimited access. The casual player that's consuming content at a different rate can pay as they go.
So how does it work? Dungeons and Dragons Online
truly is a free-to-play game, following a "time versus money" pattern. You can use the store as a shortcut, purchasing Turbine points with real world cash, but investing time can earn Turbine points as well via favor with the different houses, and it all spends the same in the DDO
Turbine didn't jump into their new business model headfirst, though: "Be cautious at the beginning. Build in more roadblocks and toll gates if you're nervous about 'will they pay?'"
That was a serious concern for Turbine at the beginning, wondering if players would only take advantage of the free part of the game, thus creating a business model that wasn't sustainable. The temporary addition of things like leveling sigils served as a small safeguard while Turbine watched to see how things played out. While a primarily digital download format was the hope and expectation, the model was designed to support a physical box should it become necessary.