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The stated explanation for this move was a «realignment of company focus and publishing support». On August 31, 2012, Paragon Studios announced that it was being closed, and City of Heroes would cease all billing immediately and begin the process of shutting down the service. Special models for former subscribers would be termed Premium Players, and current subscribers would become VIP players, who would gain access to all the content in the various upcoming game updates. On June 20, 2011, Paragon Studios announced that they were going to switch to a hybrid subscription model called City of Heroes: Freedom, adding in a free-to-play game model. Going Rogue was released on August 17, 2010, with pre-purchasers able to play on August 16. Paragon Studios described this as « the shades of gray that lay between Heroes and Villains».

This part of the game centered on the alternate reality of Praetoria and featured a new alignment system allowing players characters to shift allegiances between Heroes and Villains, giving characters access to both Paragon City of CoH and the Rogue Isles of CoV. The City of Heroes: Going Rogue expansion's release was announced on May 11, 2009.
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On October 30, 2008, NCsoft announced a partnership with Transgaming Technologies in order to bring both City of Heroes and City of Villains and all 13 expansions to Mac OS X. This then led to City of Heroes becoming available for download on Steam, along with other NCsoft titles, on April 22, 2009. The new studio on April 14, 2009, became Paragon Studios, which shared credit with Cryptic Studios for the development work. On November 6, 2007, NCsoft announced their purchase of the CoH/CoV intellectual property and transitioned the staff from Cryptic Studios to a new location in Mountain View, California, to continue development of the game. Prior to this, a purchase was required to access either game's content, but they were linked by one account and subscription fee. Thus, a player who only owned City of Heroes could now play City of Villains, and vice versa. On July 16, 2008, NCsoft merged the two games' content together. Initially dubbed as an «Expanshalone» by the developers (a portmanteau of an expansion pack and stand-alone), the game did not require CoH to run, but if the user had both games, content was added to the CoH side of game play.

On October 31, 2005, the game's first sequel, City of Villains (CoV), was launched, allowing players to play as supervillains. In the game, players created super-powered player characters that could team up with others to complete missions and fight criminals belonging to various gangs and organizations in the fictional Paragon City. On August 31, 2012, NCsoft terminated its Paragon Studios development team, ending all production on CoH with the last day of services on November 30, 2012. The final live update, «Where Shadows Lie,» was released on May 31, 2012.
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Twenty-three free major updates for City of Heroes were released before its shutdown, with a nearly finished 24th update able to be played on the games beta server. The game was launched in North America on April 27, 2004, and in Europe (by NCsoft Europe) on February 4, 2005, with English, German and French language servers.
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City of Heroes Download Free Full Game (CoH) was a massively multiplayer online role-playing game based on the superhero comic book genre developed by Cryptic Studios and published by NCsoft.
