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To me, this sounds like the game isn't turning out even close to what they wanted it to be when they started it, and they themselves view it as a flop. If they have a chance to make more money, they're going to do it. Their choice at this point in time, when we have practically no info of the game, suggests to me that they're already viewing the game as a failed project and deducted that localizing it for Europe would cost them more money than they'd make from it.

But that's just what I think.