An anonymous, "trusted" source has told IGN that Microsoft plans to make free-to-play games available via Xbox Live.

The free-to-play model has been hugely successful in recent years, with the likes of Free Realms and Battlefield Heroes generating revenue by selling in-game items that enhance the player's in-game experience.

The IGN post reads:

Sometime next year, Microsoft will make available free-to-play (F2P) games through Xbox Live, a trusted source told IGN. This will allow publishers and developers to release games through the service for free where users can then purchase additional content, such as weapons, experience points, in-game currency, and perks.

One of the first games likely to fit into the free-to-play category, looks set to be Dungeon Fighter Online, a multiplayer beat 'em up from Japanese developer, Nexon. The game will be an Xbox 360 exclusive and will support the free-to-play business model with players able to buy upgrades from the in-game store.

Source: IGN