Let's see:
1. The text in the game is already being localised for the Asian version;
2. Voice acting is the vast majority of what remains, in a game with (if the originals are any indication) a very, very limited script. They could stick to subs if they want to go cheap.
3. Going digital-release-only in the West would mean that the potential expense of manufacturing and publishing and the risks involved are gone
4. DoA5 was very successful in the west
5. DoA5 sold tons of DLC bikinis in the west, which is surely the model DoAX3 will use. There's no reason to believe it wouldn't be as successful a business model, let alone not successful enough to make back the meagre localisation costs
6. The internet and DoA5 fans online have clearly been hyped for this game, and there has been plenty of discussion (and extremely positive feedback) on all major western gaming boards. There's a decent-sized audience in the west anticipating the game, TK know this through social media.
How does it make sense not to release it? It doesn't, and therefore I'm inclined to believe their answer.
1. Consider NA/EU localizations to different EU languages. Europe is the west. Not everyone knows English.
2. CVs still have to be paid for their voices being sold overseas.
3. Point
4. No it wasn't. DOA5 going F2P so soon after launch is an after effect of DOA5 doing poorly. The shit releases of DOA4, DOAX2 really harmed the brand. Remember when TN tried to go straight with the image of DOA to be respected as a fighting game and failed, well:
5. This is why the above is important to note. DOAX3 is a retail title.
6. Still an incredibly small audience that doesn't warranting localization to NA/EU.
They don't want another bomb. Csimple as that.