Producer Satoshi Sakai was interviewed by Japan's Famitsu magazine, where he revealed how the online role-playing game will adapt to the free-to-play model.
According to Kotaku's translation of the interview, the decision to go free-to-play was made early in the game's development. Sega hopes it can change the perception of free-to-play games, which the company observed favour users who pay and shun those who don't.
To address that concern, Sega will limit paid content to non-essential items, such as upgrades to a player's room, expanded storage space and trading features.
"There is nothing that requires payment that will take away from the intrinsic game experience if they are not purchased," Sakai said.
"By allowing a well made game like PSO to be accessible more people, we felt that we had a chance to teach people that 'This is what online RPGs are supposed to be like," he added.
Phantasy Star Online 2 will be available on PC and PlayStation Vita with cross-platform play.
A separate version for smartphones will release later with simplified controls and character creation features.
The PC version of Phantasy Star Online 2 is currently in the closed beta stage, with a release in Japan expected this summer. It will launch on Vita sometime in 2013.
> Retro Corner: Phantasy Star Online
Watch gameplay of Phantasy Star Online 2 below: