It really depends. Given the "Reason" that they are proposing as the cause of the attrition, it could very well have been part of the original projected model. In which case, they were anticipating that volumes would drop after the initial free offering period. This isn't that uncommon.
But if it was not predicted in the initial business model, someone is on the hotplate. Wouldn't want to be that guy.
It makes me happy because it is yet another nail in the coffin of the MMORPG archetype that has existed since the first EQ and popularized by WoW. Gamers are getting tired of spending $15/mo on the same gameplay just dressed up in a different setting. I played in some of the SWTOR beta weekends and that alone bored me and prevented me from wasting $60.
They need to develop something different. The current model that most MMORPGs use is tired and stale. Blizzard's Titan project claims to do that, but we'll have to wait and see.
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