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jarrod said:

I've said it before and I'll say it again, both Xenoblade and The Last Story will get western releases in 2011.  They're both huge, ambitious, big budget JRPGs that really break a lot of genre conventions, and they're both ripe for localization.  Besides, all the hints are already there in terms of trademarks, web domains and even Perrin Fucking Kaplan actually knowing what they both are.

Besides, Nintendo's been publishing JRPGs left and right on DS the past 2 years or so in America/Europe (Glory of Heracles, Fire Emblem SD, DQIX, DQVI, Mario & Luigi 3, Pokemon Plat/HG/SS/B/W, Pokemon Ranger 2-3, Inazuma Eleven, Fossil Fighters, Pokemon Dungeon 2, etc, etc).  That well's about to run dry (FE3, DQM2, Super Fossil Fighters and maybe some L5 games are all that's left), makes some sense they'd shift gears to Wii this year and next (leading up to DQX in 2012). 

Well, Xenoblade was listed on Nintendo of America's release schedule for months before it was taken down. It was also listed on their supplementary data for financial info. The Last Story is ripe like you said, and has a lot of reasons for localization.  I did hear that The Last Story was trademarked for US and EU, and both thelaststory.com, and xenoblade.com redirect to Nintendo.com, so there is hope.

 Judging by Nintendo of America's track record (Disaster never made it, Project HAMMER got shevled, no Captain Rainbow, no ASE, and no Fire Emblem until the GCN) it may take a while.

We may see them in the future, but for now, off to Ebay.