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Here is a question, would it be more logical for Microsoft to focus ENTIRELY on selling their device in the United States (and I mean so much that they region lock it to U.S. soil) and market it as "The American Console" and totally forget about Europe and Asia and Australia or to continue their attempt at making it popular in the rest of the world?

Yes, then they would sell less xboxones overall, but they would also be spending a HUGE amount less money on marketing and making their devices appealing to the French, Germans, English, Australians, and Japanese.