Reasons For Regional Lockout
Some of the reasons for regional lockout are as follows:
Pricing. It is difficult to maintain a single pricing structure that can be applied worldwide. Region-locking a console means that there is no need for pricing parity across the world; different territories can have different prices for games without people simply shopping "wherever is cheaper".
Sensitive regions. Some games could be regarded as offensive for religious or political reasons, and regional lockout may be required to prevent these games from being distributed in sensitive countries.
Staggered launches. If a console is region-locked, then staggered launches of the games would be easier, as console producers could easily control the huge bow-wave of people wanting a game the moment it is released.
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“Metaphysics is the finding of bad reasons for what we believe upon instinct; but to find these reasons is no less an instinct.”
—F.H. (Francis Herbert)