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Adinnieken said:
"Project Spark" is the name of an internal project. Yes, Project Spark will be released for free. It's being released as a beta for people to use.

Has Microsoft said that the final product will be free? I don't recall ever hearing that. If it won't be, then what's the cost and what about player created content? If it will be, cool, but still what about player created content?

I don't think Microsoft has said anything about the final product, just about Project Spark.

Actually from what I have read about it. Project Spark is even the name of the final product now :)
It will be free with all the goodies you see in the videos. But they are going to sell expansions packs (DLC) for few dollars containing other creatures/objects/textures etc...