Software releases aren't frequent enough. In Japan there's a new game practically every week, sometimes multiple. In the US we haven't had a new 3DS game in over a month. I mean what do we get? A licensed Spider-Man game? Meanwhile, Japan gets Guild 01 and DQ.
I understand -- Japanese third-parties are more interested in making games for handhelds than Western third-parties. Many of those games are not localized because they wouldn't appeal much to Western gamers, anyway. Where I'd say the real problem comes in is when games that COULD appeal to Western gamers aren't localized, or aren't localized right away. Games like Professor Layton, Monster Hunter, Rhythm Thief, Harvest Moon, Theatrhythm, Fire Emblem, Kingdom Hearts, the aforementioned DQ. All of those games are already available in Japan, and are not yet available or will never be available in America. Could you imagine if America and Europe had not some but ALL of those games on shelves right now? In that scenario, 3DS might not exactly be flying off the shelves in the West, but it would most likely be selling MUCH better than it is now.
3DS sales will pick up in the West in the next year, while they reach astronomical levels in Japan.
