It's not confirmed either way,
the speculation that it might be free came from this
"I talked a little about the subscription model for the game yesterday, but today I received word from a source that a Square Enix rep at the booth have indicated that Final Fantasy Fantasy XIV will use a Free-to-Play (F2P) model, which has been gaining popularity recently. There are no details yet, but apparently Sony and Square Enix is currently in discussion regarding the subscription model."
Sony is probably pitching them the idea of F2P or Micro, using their model of Guild Wars or even Free Realms. Sony has also said DC Universe might be F2P. Maybe this is why it is currently only announced for PC/PS3 and the 360 version of the game might hinge on what the subscription service is like.
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