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Covered this in a long post in the UNITY thread last year; don't feel like repeating myself. It's a stupid policy, especially for someone who could use all the allies the can get.

I also covered the region lock issue, where Iwata famously stated that "it is a feature we have imposed historically", which is a non-reason. This falls under the same category; they're basically doing it because they can but only end up hurting themselves in the process.