XSeed took a chance on localizing Game Center CX (the game based on the popular Japanese Lets Play TV show) in the form of Retro Game Challenge, and they suffered for it. Despite great reviews, the DS's huge install base, and being released during the big retro craze from 4-5 years ago, the game failed to sell up to expectation. That hurt the sequel's chances of finding localization, which was the real tragedy. As great as the original is, the second game is better in just about every way.
Many suspected that piracy was to blame. The DS was incredibly easy to pirate on, and Retro Game Challenge is a collection of games that are sure to appeal to experts of game emulation, -- the exact group who would be most knowledgeable about pirating games. It's easy to guess that a lot of people who were interested in Retro Game Challenge just downloaded it an never looked back.
The good news for publishers is that the 3DS is a lot less piracy-friendly, and has been a successful home for a lot of smaller, stranger releases. Could Game Center CX 3 ever make it out of Japan? Package is with the fan translated Game Center CX 2, and release it at both retail and the eShop, and I'm sure it would find a sizable audience.