Transfers have already started. So if there was going to be some megaserver instancing technology or some massive server upgrades it would already be in place to handle a population swell on the destination servers.

I really doubt bioware has spent money on more hardware as they just went through a round of layoffs. If there was something invested in the server infrastructure upgrade, I can only assume it would be front page news for them.

The most simple explanation looks to be the most likely. That the game just does not have enough players to support more than 15-20 destination servers they are consolidating too.

When they get around to implementing f2p, I would bet they do some sort of instancing then to handle a population swell.

The transfers have really revealed the extensive player loss SWTOR has suffered. The F2P trials to level 15 coming next month will help bolster the player numbers, then the complete transition to F2P/freemium will further pad those numbers. The problems with the game will still negatively effect player retention - - those F2P players will not stick around long after leveling up one or two characters.

How long before P2W items, permanent stat boosts (a la LotRO), lock box lotteries, etc. make it into the cash shop in EA's desperate quest for more income?