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They're being dishonest. What they're really saying is that AAA MMO releases are dead. Too much risk involved since copy & pasting other successful products (EA's motto) doesn't work in the MMO industry. EA has tried it twice, both times failing, with Warhammer Online and then Star Wars TOR.
Now, they're moving towards copying the freemium model.
EA only knows how to copy. For example, they went big into the whole FB social gaming scene, but now that is failing miserably; because it was simply unsustainable. I mean, not to long ago, they were declaring that social games were the next big thing. That bubble seems to be bursting real fast.
The freemium bubble is going to burst, too.
You think AAA MMO's have saturated the market? Wait until the big companies really jump into the F2P market. Inferior games, inferior content, inferior game-play, made to look pretty with things that bounce across the screen while stars glimmer and burst everywhere.
Get ready for the next-generation of MMO's, The Age of Mini-Games and Gambling Like Mechanics.
Don't believe me? Go play Free Realms.