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They limit your ability to redeem region locked products by your devices IP? What if you were on holiday or travelling? I'm surprised the company that makes the software running 80% of the worlds computers came up with such a basic solution. I assumed the account itself would be region locked like Steam accounts.
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I suspect they're not actually too fussed about people doing this for Xbox Game Pass.
I've essentially bought into the ecosystem for 3 years just before the Xbox Series S/X is released, so they've got another sale there almost guaranteed and they've removed any thought of a PS5. It also persuaded me to buy an Xbox One S at the start of lockdown.So they've certainly 'lost' a couple of hundred quid by my cheating to get it, but they've taken me out of Sony or Google Stadia's clutches for a while.
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The Playstation store used to let you register another account elsewhere in the globe which was region locked based on your credit card address, but the credit card company doesn't take notice of the address you provided. I had a US account registered to a hotel room I stayed in once, ands as it was set as primary I could buy games on the US account download them to the playstation and play them from my main UK account as a peer on the device.
IP address geolocation is considered the next level of this and you'd be surprised how many banks still don't have the facility implemented to prevent fraud and laundering.
Ok, may be dumbing it down too much, maybe not. Anyway.
Different countries have different pricing. UK tends to be more expensive, Brazil is one of the cheaper ones.
Microsoft only allow people in Brazil to actually redeem a Brazilian product/code.
You can get VPN software which routes your web browsing via another country. I use Tunnelbear, which has a plugin for Chrome that makes it easy to use.
So I can buy a Brazilian product, then switch on Tunnelbear and set my 'location' to Brazil. Then when go to redeem the product, Microsoft are happy that I'm in Brazil, so they let me redeem the code.
Once the code is redeemed then it's not region specific anymore, it's just associated with my account. So I can then switch off the VPN.
Separately, Microsoft offer two types of Game Pass. Gold, the old one, which offers the Xbox games, and Ultimate, the newer one, which offers games on Xbox and PC. Ultimate is more expensive. If you convert Gold to Ultimate you get something like 8 months Ultimate for every 12 months Gold.
But they're doing an offer where you can pay £1 as an intro for a month's Ultimate and it'll also convert any existing Gold 1:1.
You can only have up to 3 years of subscriptions at once.
So all that lot above said, the steps go
Buy 3 years of Xbox Gold from Brazil for fairly cheap (from someone like CDKeys or another reseller)
Switch on TunnelBear, set location to Brazil
Redeem 3 years Gold on Microsoft website
Switch off Tunnelbear
Use the £1 offer to convert your 3 years Gold to 3 years Ultimate.
(you can only do that £1 offer once, and once it's converted to Ult then it can't go back to Gold, so doing that AFTER you've got 3yrs of Gold is the main thing)
You should then have ~3years ultimate for about £80-90, rather than ~£450
Also here for a current example
https://www.hotukdeals.com/deals/12-month-xbox-live-gold-brazil-membership-vpn-will-be-required-to-activate-at-electronic-first-3546605