Why do companies restrict their devices? Initially I though it was rules that were imposed on the companies to do so for screening and censoring issues? but Sony did it! Why don't Nintendo and Microsoft follow suit?
In the case of Nintendo it's because they're possibly the game company most obsessed with playing it safe when it comes to any potential for trouble, at least when it comes to players getting lost in games and whether anyone may find an excuse to sue them. In this case many areas are requiring rating controls to be built in, and while Sony and Microsoft's approach has been to put it in but you sorta have to figure out what you want to do with other regions, Nintendo's is to ONLY allow the one region's ratings and everything else won't work.
I don't doubt profit's part of it, but Nintendo has shown such an obsession with playing it safe and disregarding alternatives that when they say that's why I can honestly believe that from them it's a BIG reason at a minimum.
The common argument is that we should embrace region locking because it protects small publishers and their profits.
Of course this argument only makes sense from regions that actually get those games. For the rest of us, the threat of not getting more games instead of not getting games is somewhat empty.
Yeah, in fact I think this only specifically applies to England and to a lesser extent the rest of Western Europe. Outside of those areas it seems to be irrelevant: either they barely exist there, or in the case of North America we A. have a language barrier when importing from Japan, B. almost always get any games that'd hit Europe (the big three RPG/RPG-esque Nintendo games being the big recent exception), and C. almost always get games at the cheapest anyway. For us importing should rarely actually be an issue for domestic release, though the inverse could be a problem at times as a result.