Lord of the Rings Online developer Turbine has confirmed that it is working on a new MMO that will include the micro-transaction business model.

The company posted a job listing for a micro-transaction and e-commerce manager earlier in the week, leading many to believe that it would be adding micro-transactions to its current MMOs. A Turbine spokesperson instead explained that the position is for work on an unannounced project.

"We know the recent job listing has caused a bit of a stir, but please be aware that this posting is for an unannounced future project," said Lord of the Rings Online community manager Sapience in a forum post.

Micro-transactions, or small payments in exchange for in-game benefits, have been a controversial but potentially lucrative source of revenue.

Games supported by micro-transactions typically include free-to-play titles, such as EA's Battlefield Heroes and Petroglyph's Mytheon. BioWare's upcoming Star Wars MMO The Old Republic has also been rumored to make use of the micro-transaction model.

Publisher True Games Interactive today announced that it has partnered with independent developer Petroglyph to create a free-to-play real-time strategy game that will be supported by micro-transactions.

Founded by ex-Westwood employees, Petroglyph is best known for its Star Wars: Empire at War (PC) and Universe at War: Earth Assault (PC, X360) RTS titles. Micro-transactions commonly refer to in-game items sold at a low sum of actual currency.

The studio marks the latest established developer to pursue the lucrative free-to-play market. Battlefield creator EA DICE is currently prepping its free-to-play effort Battlefield Heroes, which will be supported by out-of-game advertising and micro-transaction revenue.

"Petroglyph is known for high quality RTS games that appeal on a global... Read more

Microsoft went on the record today by announcing many details concerning its next-gen Xbox, currently codenamed Xenon. Microsoft Corporate Vice President and Chief XNA Architect J Allard covered a lot of ground, focusing on what he calls the "HD Era."

"In the HD Era the platform is bigger than the processor," Microsoft's J Allard said. "New technology and emerging consumer forces will come together to enable the rock stars of game development to shake up the old establishment and redefine entertainment as we know it."

Allard described new concepts that will be implemented: Gamer Cards, a profile of key Xbox Live information for each gamer; the Marketplace, where gamers can buy and shop for different in-game content such as skins, vehicles, or maps; Micro-transactions, small-priced items that players can acquire through the Marketplace for as little as .99 cents; and Custom Playlists, allowing developers to no longer have to code in the feature into their games, it's already there for use.

The full press release can be found here. For more information about the next-gen Xbox, read the lead story of last night's Late Night Consoling.