I think it's kind of dumb to be honest. Don't get me wrong, I literally just bought WoW, but that will be the only subscription MMO I will own. I shouldn't have to spend $40 on the game (on release), then another $30-$40 for any expansions (on release), on top of a sub that costs $15 monthly (this is going by WoW prices at times of releases, not now). There shouldn't be any subscriptions, just a single purchase for the game/expansion.
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Just to play devil's advocate here...it costs a LOT more to support an MMO purchase post-sale than any other type of game. In the case of MMORPG's like WoW they have to maintain a server infrastructure, fix bugs, fix game balance issues, etc., and most companies that run an MMORPG release at least a little bit of free content periodically. That's all in addition to the initial development costs and general product support. From a business perspective you could easily find yourself in the red if sales taper off and you still have to worry about all of the ongoing expenses.
As I have said, what makes subscription based MMOs any different than other monthly pay services?
When you sign up for cable TV, there's generally a sign up fee and perhaps some equipment to buy. Then you have to pay monthly. Want more channels? Pay more monthly.
It makes no sense that you ask game companies to put out a potentially endless product (an MMO) and request of them to only have to pay a single, one time, low end flat fee. And then want them to make additional content.