I think the trouble with this method of delivery is trying not to make it look like the customer is getting ripped off or they are only buying half a product.

As I’ve mentioned in other comments, the boxed product can’t be sold for any cheaper than it is now because of the way the slices of pie are dished out. So selling a cheap initial version would be a bitch.

So instead you’d have to hope that people will be sold on there being additional content and services for free further down the line. This is a really hard sell.

For most games, they have to appear like you are getting a full product in the box and any other content is additional and optional… but this additional content has to be ‘must have’ at the same time to sell it! It’s a difficult balance to get right and very few do it well.

The best example I can think of is Team Fortress 2. Not only did they sell the game in a bundle first for value for money, but every addition is free and they just keep on coming. This seems really generous but they take the line that they are offering a service. However, they can afford to, cuts down on piracy and it helps promote steam and future Valve games that will probably also get additional content.

I don’t think many other publishers or developers would be happy doing that. Most games are just one-offs and developed and budgeted in that way and it’s easier just to pretend that making console games and adding useless DRM will avoid piracy.