Pyro Paul said:
It is regional code
1=US (NTSC)
2=EU (PAL)
the funny thing is that the Regional code is on the spine of US games while it is on the back cover for PAL
The Xbox360 uses NTSC and PAL designations on the spines of their games.
More accurately, it's the Blueray Region code.
1 is most of Asia and the US
2 is Britain and Australia
3 is the rest of Asia not covered by 1 (If I'm remembering this correctly)
It's why you can import Japanese PS3 games on an American PS3.
It's diffrent from DVD region coding. Way different.