Something that the interview I just reblogged on Japanese vs Western video game design didn’t address is that Western and American are not interchangeable, and localising like they are causes its own issues. The rest of the world, or even just the English-speaking bits of it, is a pretty big audience!
One of the more immersion-shattering localisation things I have come across in a Japanese game was in Ace Attorney, a series that generally gets praised for a good localisation that finds alternatives for a lot of Japanese cultural references and humour that wouldn’t have been widely understood.
Problem is, the games carefully never actually state where they are meant to be set, and still have plenty in them which gives away their Japanese origin. At one point in one of the games there is a puzzle based around a car, and in the version I played you find that that car was imported from the UK. The point is meant to be that the car has the driver sitting on the opposite side to other cars.
Up to that point, I’d been playing with a fuzzy but unquestioned assumption that the game was still meant to be set in Japan; in Japan, cars are driven on the left, the same as the UK. To solve the puzzle, I had to work through a thought process that while I was playing a British version of a clearly Japanese game, it was nonetheless intended that I should assume, unprompted, that the game was set in the US. It made my head hurt a bit.