Speaking about upcoming fighting game Tekken Tag Tournament 2, Harada told Eurogamer that all of the elements necessary to enjoy a fighting game should be on disc and available for free.
"When you look at DLC, whether paid or free, a lot of titles have it on the disc, it's not that unusual. I've been saying that, at least for Tekken, regarding techniques, characters and stages, these three things won't be charged for, even if they are DLC.
"Actually this is something my bosses have been asking me for quite a while now - what are our plans for DLC? How much money can we make? They are a company, obviously, in it to make money. So it's something I'm continually asked even now.
"But I haven't changed my stance. If you're making a fighting game, all of the elements necessary to enjoy it should be on the disc, or should at least be available for free," he added.
Harada went on to suggest that non-essential extras such as soundtracks and past ending movies could be introduced as paid DLC, but said that he'd rather quit Namco than include content that was necessary for the enjoyment of the game.
"If I was given the choice to include paid DLC or quit Namco, I would maybe quit... Or maybe I would just say 'get someone else to deal with this'," he concluded.
Tekken Tag Tournament 2 includes new modes, such as one-on-one, two-on-one and two-on-two matches, the last of which allows up to four players to each control their own character fighting on separate planes.
It was confirmed at this year's E3 that Snoop Dogg will feature in the game as a non-playable character, having contributed music to the game's soundtrack.
Tekken Tag Tournament 2 will be released for PlayStation 3 and Xbox 360 on September 14.
Watch a trailer for Tekken Tag Tournament 2 below: