I believe that it is important to target local audiences because in order to sell games to consumers and build a good relationship with fans, producers and developers need to please the consumers of the game. To sell copies in the local area, games producers and developers will edit games so certain elements of the game fit in with the culture and views of the country it is being marketed in. For example, Swastikas aren't on any games in Germany.
Local audiences change the products that are introduced into the market as producers and developers will shape production of products for certain geographical areas to shape sales. In China, gaming is believed to be corrupting the youth, and the likes of Internet Gaming such as Minecraft and RuneScape is very popular over there, and a lot of money is being spent on virtual products. Ninetendo have combatted this by producing the iQue player in China, in which you buy a memory card and download the games onto it instead of distribution via disks
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