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Samus Aran said:

It is. Good sales increase chances of localisation.

Not really.  It doesn't hurt anything, but it isn't a particular factor in play.

Perceived market and potential profits are what will affect any localization decision.  

How many resources is it going to take to localize a title?  How big a market is it likely to hit in the west?  What's the availablity of the licence to a third-party localization house?

If sales meant titles were getting localized, then many of 3DS' bigger titles in Japan would've come across by now (i.e. Puzzles & Dragons Z; Dragon Quest VII; Taiko no Tatsujin).

And just for comparison, here's 3 games localized by the same Japanese developers of the above: Ragnarok Odyssey; Theatrhythm; Project X Zone)

Note the Japanese sales of each of those games.  None of them are anywhere close to the first 3, but they all got localized.  Why?  Easy titles without a whole lot of text.  Worldwide appeal.  International history for the latter two titles.  Certainly not their sales in Japan.