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Kobo has been released in a number of countries this past year and definitely plans to roll out in others, including countries where language differences require some capabilities that are probably different from what we see on the Touch right now I don't see the challenges of preparing for a Japanese version as reason enough to say that this is why there have been no recent updates.
That being said, the Asian market in general and the Japanese market in particular is huge and Rakutan both owns Kobo and is the Amazon of that region of the world. No doubt that being big there is a huge priority for them.
The question I would be asking after reading this is if means that we will see an update or new reader in July, as I cannot imagine that adding the capability to handle Japanese will be the only thing we will be seeing from Kobo.
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