According to a "trusted source" over at IGN, Microsoft is set to bring free-to-play (F2P) games to Xbox LIVE in 2012, giving publishers the ability to release free games while charging for extra content and add-ons such as weapons, experience points, in-game currency, perks, and more.
This isn't the first time we've heard of free-to-play games on Xbox LIVE, with BigPark's Joy Ride originally aimed at the F2P market when it was announced back in E3 2009, but as we now know, Joy Ride turned out to be a full priced Kinect game.
Free-to-play games using micro-transactions is something predominantly seen in MMOs on PCs, such as Dungeon Fighter Online or the up and coming Battlefield Play4Free, so it will be interesting to see how it would fare on a console like the Xbox 360. If the rumour is true, we'll find out next year.
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