Long-time Nintendo localization manager Leslie Swan has shared that when late company president Satoru Iwata learned of plans to localize Animal Crossing for the West, he "burst out in laughter" due to the number of Japanese cultural references in the game.

The details:

Speaking with Time Extension, Swan discussed some of Nintendo's biggest localization projects, highlighting classic GameCube title Animal Crossing, which was originally released exclusively in Japan on the Nintendo 64 as Animal Forest. It is said that game producer Takashi Tezuka asked Swan and her team to translate the title into English for a Western release, and when she agreed, Tezuka warned her about the amount of work that would be required. "But then he said, 'No, Leslie, I'm not sure you understand; it's going to be difficult,'" she said. "And I kept having to assure him that we would make it happen."
After agreeing to the difficult task, Swan would meet with Nintendo’s leadership, where she revealed the project to then Nintendo president Satoru Iwata. She states that the boss burst into laughter at the idea and said, “I don't know how you're going to do this,” as so much of the game’s references and style were specifically catered to Japanese players.
Swan confirmed that Tezuka and Iwata’s warnings were accurate, as the localization team ended up having to rename every single character, alter villager catchphrases, and even change various in-game events and items so they made sense to a Western audience. “Some items that didn't make sense at all,” she explained. “They would have so much charm in the Japanese version, but they wouldn't have provided the same kind of charm for Western audiences. I can't tell you the number of hours we spent on that game, all hands on deck. We were so lucky at that point that we didn't have other big projects, as we pretty much had the entire staff dedicated to that game."
That was not the end of the localization process; Nintendo also had to clear the changes legally in the event that the game became a global success, leading to the creation of merchandise. According to Swan, it took at least six months to clear the name “Animal Crossing,” and hundreds of alternative titles were pitched, including “Animal Acres.” "We really wanted to maintain 'Animal' in the name," she said. "And we did try to keep 'Forest' in the name too, but legal told us, 'No, that's not going to happen.'"

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Former Nintendo boss Satoru Iwata "burst out in laughter" at the idea of localizing Animal Crossing, interview reveals