For single player games, it's a great model. Why pay $60 when you can get all you want from $40 and maybe an extra $5 DLC later?
For multiplayer, not so much. Take Rock Band for example.
--
-SirDoom joins the game-
GuitarProDude978: "Dude, how many DLC songs you got?"
SirDoom- At the moment, only a handful, but-
-SirDoom has been booted from the lobby-
---
Not a good experience for those who spend little to nothing on the extra content.
For multiplayer, not so much. Take Rock Band for example.
--
-SirDoom joins the game-
GuitarProDude978: "Dude, how many DLC songs you got?"
SirDoom- At the moment, only a handful, but-
-SirDoom has been booted from the lobby-
---
Not a good experience for those who spend little to nothing on the extra content.