Nintendo has a precedent though, unlike XSeed or NISA. 

It's not their job. Square Enix should have half a mind to know these ports would pull good numbers in the west.

That being said, considering Nintendo localized Bravely Default and I believe they're doing the same for Bravely Second, I'm not sure why they wouldn't take a chance with these DQ games when they would almost certainly sell the same, if not better.

Because 3DS market has crashed in the West. Even Puzzle & Dragons Mario flopped.

The previous DS games were initially translated by Nintendo of Europe but due to the relocation to Frankfurt, many people there lost their jobs. Reggie never cared about JRPG's so he will not fund it. Therefore SE should create a Kickstarter to fund the translation for DQVII, VIII and DQM 1&2.

Having to pay in advance is still better than not being able to play the game ever.

The 3DS market has not crashed, stop saying these things. Have you seen the sales of Majora's Mask 3D and Monster Hunter 4 Ultimate? What about games from last year like Bravely Default, Tomodachi Life, Fantasy Life, Kirby: Triple Deluxe, Smash Bros. 3DS, Pokemon ORAS, Professor Layton and the Azran Legacy, Persona Q, etc. Puzzle & Dragons is a mobile game with a Mario skin that was marketed very little. It doesn't have a market at all in the west.

Your irrational 3DS hatred needs to stop. It's silly.

heard a rumor that Nintendo was given a choice between to localize Bravely Default or Dragon Quest 7.

The 3D market hasn't crashed. The thing with Puzzle & Dragons was that the game is really popular in japan, and it's not a text heavy game. Localising it wouldn't be hard or expensive, no matter how little the game sold. I'm sure Nintendo didn't expect to sell more than 10k on this, when this is basically a mobile game for 25€. I'm sure this made enough profit to deserve the localization, and help the 3DS lineup.

This is all too true. They are localizing a damn spin-off of Dragon Quest yet not remakes that are attached directly to the main story line and are also on a currently better selling platform. Not to mention Dynasty Warriors-esque games don't sell well in the West anyway.

I'm not one to call third-party bias against Nintendo all the time, but Square Enix is definitely ridiculous. 

It's not irrational though. In his position, it actually makes all the sense in the world.

Oh, I'm pretty sure they expected far more.

That doesn't make him right by any stretch, though.

I'm sure this is just testing the waters. When Nintendo starts bringing their mobile games, Puzzle & Dragons Mario will be one of them. And it will sell like crazy, at least in Japan.