Popping into the comments section of a post on the PlayStation Blog, Sega of America assistant community manager Aaron Webber has said "Yakuza 3 is not cancelled – and the possibility for localizing it does, in fact, still exist."
"The original news story that went around about Yakuza 3 being declined for the US was false, and localizing the game still remains a big point of discussion for many people here at SEGA, and especially those of us on SEGA's community team."
"I know it's far from an announcement, but I just felt you should know that the chance does still exist."
Nice. For what it's worth, here's what we've heard: that Sega are looking for somebody else to localise the game, take the risk, similar to how Capcom handles the release of GTA in Japan.
Valkyria Chronicles II – Coming to PSP Next Summer [PlayStation, via 1UP]