Firstly, region locking is an effective countermeasure to losing revenue to the gray market. Generating game download keys lets you sell your game beyond Steam, including into many more regions. But that opportunity exposes you to a vulnerability;
the gray market. Simply put, a single game will be priced differently across the world, to meet the reality of local economies. Not everywhere has the same consumer spending power, meaning in some countries a game’s RRP will be significantly less than elsewhere. The gray market occurs when a title is priced differently across regions for economies, causing an imbalance in pricing. Without the right controls in place, those gaps can meaningfully erode publisher revenues.