With an update to version 4.1 of Xcode Apple has made it free on the Mac App store. This application was initially made available on the App Store at $4.99 and was widely downloaded both by developers and users who wanted the feature of additional multi-touch gesture on their iPads
It is apparent that this move from Apple is to invite more and more developers including amateur, hobbyist and just the curious ones to code for the Mac & iOS platform. One will be able to develop and use his/her own application outside the Mac App Store. To be able to sell your application on the Mac App store you’ll still require a developer registration which will cost you $99 per year.
Originally, Xcode was always free even if you had registered as a free developer with Apple until it was made available on the Mac App Store with the release of version 4.0. If you were registered as a free developer with Apple, you would get all tools for free but would not be able to post the app on iOS App store (Mac App store had not come to existence yet).
Through Xcode, one can create apps for Apple’s entire platform. Creating apps in this case covers all of interface design, coding, testing and debugging within a single window. It also has the full screen support which has been made standard with Mac OS X Lion