Iwata explains why Nintendo sticks with region locking, says it's not solely because of business

Coming from an IGN interview with Mr. Iwata...

"From some people’s perspective, it might seem like a kind of restriction. However, we hope people can appreciate the fact that we’re selling our products worldwide. There are many different regions around the world, and each region has its own cultural acceptance and legal restrictions, as well as different age ratings. There are always things that we’re required to do in each different region, which may go counter to the idea that players around the world want the freedom to play whatever they want. I hope that game fans can understand that the industry isn’t doing this solely out of business ego. There are some reasons behind it."

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