I've answered this question many times before (albeit it's several hundred questions down) but here's my usual response:
Our games are not very localization friendly. It's not a matter of typing in a translation file and you're done. There's quite a bit of work we have to do on the programming end to make it work properly. Work which we can't test because we don't speak the language.
We did tried the translating thing once, and it wasn't the best experience. Gemini Rue was our best selling game by a large margin. We were approached by one of the biggest German adventure game publishers who offered to translate the game (complete with voice acting!) for the German market.
Our best selling game, translated into the language of the country most eager for adventure games? Handled by one of the largest adventure game distributors within that market? It seemed like a no brainer. If anything was a sure bet, this was it.
So we did the work. It was translated and sold in Germany. And hardly anybody bought it. The sales barely even covered our advance. So if our best selling game translated into the language of the best-selling market failed to generate any money for us, it is very hard to justify doing it with anything else.
We are a very small team, and the only way we can earn a living doing this is to be very careful with how we spend our time and energy. These games support my family, and I'm just not willing to take the same risks that I used to.
One day we might switch to an engine that makes localization easier, but until then we aren't interested in getting our games translated. We're sorry.
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