a monthly fee AND microtransactions 
http://esohub.de/news/154-eso-interview-abomodell-itemshop-entwicklung[1] (via google translate)
edit: I almost forgot the initial cost... triple dipping

http://esohub.de/news/154-eso-interview-abomodell-itemshop-entwicklung[1] (via google translate)
- ESO gets a classical subscription model. With the purchase of the game you get 30 days free game time, then the game will cost 12.99 euros per month.
- According to Matt Firor will be available in The Elder Scrolls Online an item shop, where her character fun items and services you can buy as a renaming of the character.
- The game and all its contents are however covered by the subscription model.
- The reason why the developers have opted for a subscription model that ESO should feel like a big sandbox. You shall pay without any barriers can enjoy all content. Matt Firor is also of the opinion that this model best fits the Elder Scrolls series.
- The developers have looked at many different payment models in advance and you can find free-to-play games are not inherently wrong. Matt Firor itself plays as World of Tanks and League of Legends.
- The development of ESO is almost complete and it will be no more new great features for the release implements. Now the systems are tested and improved in beta.
- Currently, the developers are busy building up the server environments and prepare for a large number of players. Finally, everything should run stable at launch.
- The contents of the release of The Elder Scrolls Online're done. Currently, the teams are busy but have to develop content for future patches.
edit: I almost forgot the initial cost... triple dipping

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these transactions don't affect gameplay so you have a choice to buy shyt or not.
