"Dungeon Fighter Online will be a paid XBLA title with online multiplayer features," a Microsoft representative told Joystiq. "It is not a freemium MMORPG." This still leaves plenty of questions about exactly how it works -- though the phrase "with online multiplayer features" sounds a lot like the MMO nature is being downplayed for the console version. At least now we understand how the monetization model will work for this version -- you just give Microsoft money up front.
Of course, if Dungeon Fighter isn't an MMO, that's probably for the best. Microsoft Game Studios has a history with MMOs. A history of making them history.