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It has some kind of region locking on some games. But it you can easily bypass this. For example, I had my Xbox One setup with US region in settings but I don't live in the US. Then I bought Xbox 360 game Catherine from web browser and this game didn't appear in Ready to Install section until I switched the region in settings from US to mine. But this only happened with 1 game. So the majority of games I think doesn't affected by this