On the computer platform there are a bunch of games that use the free to play scheme and are supported by other means. These free to play games allow the user to buy things in the game to make their gaming more fun. The perfect example of the free to play game that also makes a lot of money in add ons is Farmville. There are hoards of people that buy points to add items on the game. Sources claim that to support this style of game Microsoft is preparing a microtransaction system.
The sources also claim that Microsoft is working behind the scenes with game developers to try to get them to build games that are supported by smaller in game transactions. The games could also make money by selling premium upgrades as well. So far Microsoft has offered no official statement on the plans for free to play gaming and the micro transaction service.
The success of social games and their developers at using free to play gaming with small micro payments to support upgrades and other items should appeal to the traditional game developers. The other challenge for Microsoft may be the fact that gamers have to pay to play games online by purchasing an Xbox Gold account. One step to making this work would seem to include opening up online gaming for all Xbox users.