(1) It’s a tactic for converting potential customers into paying customers, and if done well can result in those customers being far more generous with their wallets (2) the game would be meaningless to pay to play if the free to play get isolated and leave.
While I can’t blame Inno for wanting to turn a profit, the game is advertised as free to play. So the paying customers will have a certain set of expectations stemming from that. It’s in Inno‘s interest to keep the free to play players happy, even if that seems counterintuitive
Yes. Business models have long recognized the power of converting such clientele. Take a restaurant that provides a lunch buffet for a discounted price when no such buffet existed before, either reduced price or not. The methodology is that the customers who receive the discount at lunch will now enjoy the offerings provided to also come in for dinner or the weekends when the prices are higher.
I could go into detail as to how such business models were applied to the computer software industry but those far more well-versed than me have already written on this issue and I won't rehash their fine words.
The one thing that seems to have gone haring off into the distance is this: for-profit comapanies are going to look at the bottom line. Period. They have no obligation to the non-paying customer. None. They might or might not be able to please the high-paying customer but history has already told them that those customers will be more than happy to move their business elsewhere if something newer, shinier, and more interesting in some way comes along, even if it means going to a different provider. The customers they are targeting are those who already spend a little and they will now focus on keeping their interest in their product by finding ways to get them to spend a bit more. They're not trying to convert those who spend nothing and they aren't even trying to alter those who spend a lot, they need only focus on those who've already exihibited a willingness to spend 'some' to just to spend a little more. Companies like Inno are in this for the long run. They are not going to waste their efforts trying to appease or appeal to the top percent of buyers and definitely not the ones who pay nothing at all. They will focus all of their attention on the greater number of clients who spend something without any prompting from them.
So, why the free play option? Easy. That's how they attract the potential customers who will spend a little. That's all they needed was to get their attention. Once they've gotten it they need only provide a service/product/etc. that will induce them to spend a 'little more.' They simply put up a banner outside of their restaurant advertising "Lunch Buffet." Wash. Rinse. Repeat.