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That's nonsense! Europe is a terrible market for JRPGs and they know that. They're just trying to make up lame excuses for not releasing in NA. Xenoblade is bound to bomb in Europe (it doesn't get the communication campaign that DQIX or MH3 enjoyed) whereas it would be a huge it in the US. Look at those figures! JRPGs do much better in NA than in EMEAA :

Fire Emblem Radiant Dawn NA - 260K; JP - 170K; EMEAA N/A (too low to tell)
Tales of Symphonia DoNW NA - 200K; JP - 240K; EMEAA N/A (too low to tell)
Hyperdimension Neptune NA - 70K; JP - 70K; EMEAA 10K
Atelier Rorona NA - 152K; JP - 80K; EMEAA 28K