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Games don't get localized due to a global threaty to purge the population of the Weeboo by causing them to mentally starve due to lack of Weeboo input or learn Japanese and (perhaps) move there in the future. Titles worthy of localization for the western audience are carefuly picked as to preserve the sanity of all nations.
Seriously though, some games just don't necessitate a translation simply because they won't pay back the expenses or the profit will be so minute that the studio might as well spend that time doing something productive and more profitable in comparison.
A good example of that are games like Senran Kagura, Love Plus, Code of Princess (surprised that one actually went to the US, here's hoping it also comes here), Dokidoki Majo Shinpan, Days of Memories, etc... I love that sort of game, but they're looked at with disgust by most Europeans and Americans, whereas they're quite successful in Japan (I just gave DS and 3DS games as examples, but there's a lot for PSP and many other platforms). They probably make market studies before thinking about localising a game, so yeah, even though some people some games, the majority isn't really interested in them, hence it wouldn't be as profitable as they'd like.
Gaming is just a business in the end after all. =3









