One would expect a Level-5 game to do much more, if not just spectacular.

It's a brand new franchise.

The only other things I can think of is if it is a really bad game. Maybe word got around that it was crap? What were the reviews on it?

It's a Level-5 game. How bad can it be?

You answered the question with the first sentence. I swear, Level-5 gets the most undeserved hype out of all the studios now and days. How many letdowns do they have to release before people stop hyping their games?

Well, this is embarrassing, turns out Factor 5 and Level-5 are two different companies. 

well White Knight Chronicles kinda sucks, so there ya go.

Honestly it seems like a really strange game that just didn't hook people's interest.

It looks like a niche visual novel type game to me. Besides with digital sales I'm sure the psv one is over 10k. wait until the psp release to see the overall sales before the final judgement.

mmmm you probably dont frequent the Famitsu/Media Crate weekly sales xD much, but the games released for Level 5 this year have sold AWFUL (except for this weeks one, the remake of Little Battlers for the 3DS). Actually the majority LEVEL 5's flopping around started after the 3DS was launched so they're having a terrible "next generation"

They did really well when DS was king.

Guild one bombed really bad :/ 05./00. [3DS] Guild 01 <ETC> (Level 5) {2012.05.31} (¥3.980) - 14.790 / NEW <53,16%>, its funny that this failure was the game with the TT demo,and it sold better than the actual release of TT on 3ds xD. Girls RPG bombed badly also. Ninokuni was their most expensive bomb.

poor Level V, this hasnt been its year at all :(, I expect them to release the Little Battlers sequel also to the 3DS (its a Vita exclusive right now) and I expect them to release PLxAA this year!

Poor marketing? Dont really know since I dont live in Japan.

BTW I though this was a RPG oh well is the PSV and 3DS version priced evenly?

Well, that explained it. 3DS d0m3D Level-5.

naaaaaa, they still  had Layton (which sold decent on Japan, and is going to be released wordlwilde shortly), Inazuma eleven (again, it had decent numbers, and it will be released in Europe shortly, Inazuma games sell particulary wll in Europe), and, as i just said in my post, the 3DS version of Little Battlers had sold really well (around 80,000 units, thats pretty big considering its the 3rd time Level 5 releases the game in 1 1/2 year). AND they still have Proffesor Layton vs Ace Attorney (probably holiday 2012 or Q1-2 of 2013), its being developed by both Capcom and them, and it will sell pretty well.

So, the conclusion is that the problem here is LEVEL 5 and their planning, marketing and developing of GIRLS RPG, Time Travelers and Guild one; the 3DS is not the problem my friend.