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Correct on both counts. Companies like Atlus and NISA constantly push niche Japanese games and make a fairly considerable profit on them, while larger companies fail to mimic their success in the West. The main two factors here are advertising, which of course has a considerable impact on sales as if affects perceived popularity of a product before it's even released, and budget, which affects how much profit is actually made on each sale. If you take a game and go to work localizing it with a large spending budget, and then decide to cut that budget back in the area of advertising for the sake of saving a bit of money at the end, what else could you be left with but a wasted investment? Namco Bandai in particular seems to not do very much to build a good relationship with their fans in the West. FilthieRich is one of the better things to happen to their Western perception, but in the end he's only one person.

Back to the topic of Soul Calibur itself...at least one non-main cast fighting style was confirmed with Devil Jin, so does that mean it's possible there might be other fighting styles like there was in SC3? That was by far one of my favorite surprises in SC3 (apart from character creation itself).