That's what everyone around here is led to ignorantly or willfully believe. I don't see how blocking what is potential revenue in other regions saves one any kind of money.
If anything, region locking those games that have yet to see a localization in other regions keeps Nintendo and others from GETTING money. It's the same as the bull**** defending of demo limits.
Let's put it this way. Say that people who like Atlus games are super impatient, to the point where they just decide to import everything rather than wait for it to be localized, even if they can't read Japanese (Atlus is known more for RPGs than anything else).
Sales for Atlus USA drop. Atlus sees that US localizations of their games don't sell, and decides to close their USA branch. No more localized games from Atlus.
That's how it protects certain markets. And also potentially jobs.
Now, as someone who DOES occasionally import (and can read Japanese), it still pisses me off.
Publishers wanted Nintendo to put region locking. And with enough *****ing, Nintendo put it in.
Guess Sony has more leverage then, with Vita being somewhat region-free.
Let's put it this way. Say that people who like Atlus games are super impatient, to the point where they just decide to import everything rather than wait for it to be localized, even if they can't read Japanese (Atlus is known more for RPGs than anything else). Sales for Atlus USA drop. Atlus sees that US localizations of their games don't sell, and decides to close their USA branch. No more localized games from Atlus. That's how it protects certain markets. And also potentially jobs.
But in actuality, just to nitpick, it doesn't prevent importing; it only prevents mixing different region games on a single console.
If there were no region lock, they most likely would lose some cash, considering the time they take to localize the game/system. Sales would be counterproductive, wasting time and resources on mass producing the product, with a most likely severe overproduction.
If 99.5% of people don't import anything and buy locally, then it further makes me wonder what region locking is supposed to accomplish.
Region lock protects different markets to an extent,
Protects them from?
it doesn't necessarily bring Nintendo more money.
Sounds counterproductive to me.
Protects markets from parallel / grey-market importing.
Say game A is $60 in one country, but $30 in US. On a region-free console, a store can source the games cheaper by importing, more cheaper than buying locally from suppliers (as JB HiFI and other retailers do).
By having a region locked console, it helps the local gaming industry and supports retailers.
Finally an answer.
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it prevents reverse importing people will buy the english version of a game because the japanese/austrailian versions have huge price differences.
it's still stupid. if they want to stop importing release every game in every region.
if the game is extremely niche do what unchained blades did and be digital only in some regions. hell they wouldn't even have to translate the game just do what vc imports do stay in japanese with region coding for the other region and mark it as "import"
I am a furry AND PROUD to admit it. Also guess what I AM SMASHKING84
I'd be happy to actually explain this concept. It does bring Nintendo much more money and it can be mathematically proven... Games that cost $59.99 in th U.S. cost +$100 (after converting to USD) in countries such as Australia and Argentina. This is why:
It allows Nintendo to circumvent the WTO's international trade laws, create isolated markets, and enables Nintendo to charge a higher prices in those markets that they would not be able to charge if such markets had access to one international product that had a "global price".
Liberalized trade... that is, international trade that doesn't have barriers such as region locked hardware... would result in lower prices for everyone all over the globe.
The economics works in such a way that if trade barriers were completely removed, (which includes things such as region locking hardware, tariffs, subsidies, and everything else that makes countries have different market conditions) then there would be one global price for all products such as videogames by Nintendo, because every consumer would have the same access to the product.
In such a free market, price would naturally be lower in most countries because supply would be greater for every consumer in every country. Due to the fact that every country imposes tariffs and other regulations, trade will never completely liberalized and free, and region locking is yet another way to add an additional degree of restriction to international trade, increase costs, and isolate markets which can be exploited by producing exporters.
Here's the math: as supply goes up, demand goes down, and price goes down. Region locking decreases supply for each region, which increases demand and price. The supply of products to each country is much lower even if the same number of games are produced internationally as a result of region locking. Rather than there being one international product with one large supply-pool that everyone purchases, each smaller region as only access to their own supply pool.