I think the problem, here, is that Jim thinks it's a game. It's not. It's a badge dispenser. It's been specifically designed with the idea being that, unless you seriously want to collect all of those badges, you just have a go at the "practice" machine once in a while, and if you get lucky, you go and use your free turns to get the badges you're after.
The whole "reward" mechanism that is such a problem in the real "free-to-play" games, that is intended to get people addicted, isn't really present in Badge Arcade. So it's only the serious collectors who are going to spend a lot of money on it. For the vast majority of people, there'll be a few specific badges they want, to produce an effect they want on their menu, and that's it.
I haven't spent a cent, I've played it for two days (meaning, somewhere around 15 turns in total, including the initial ones and the practice mode ones), and I already have half of the primary batch of badges I wanted - the ones that also function as replacements for system functions (like the Toad/System Settings one). I've also got the SMB Star, Coin, and Block, which are nice ones to use on my folders. All I really want beyond that is a few Zelda ones, maybe a couple of ones from other franchises, and I'm all set. I'll probably keep playing for free indefinitely, just because I can, but there's no motivation for me to spend any money - it's not like there's a "win" state to achieve - it's certainly not "pay to win".
So yeah, Jim's way off base on this one.







