Nintendo of Europe wanted to show it at E3, but Nintendo of America didn't want to show products they won't sell.
Europe will be getting a special Classic Controller alongside the release of Xenoblade Chronicles, and North America will likely not get the game at all, according to Mathieu Minel, marketing manager of Nintendo France, who appeared on Nolife, a French television station for "geeks, nerds, and otakus."
He told the station that Nintendo of Europe wanted to show Xenoblade Chronicles at E3 2011, but Nintendo of America wouldn't let them because they didn't want to show products they aren't planning to sell.
If you take that comment at face value, that means the Nintendo of America is not planning to bring Xenoblade Chronicles to North America. It's not a full death knell for Xenoblade Chronicles in the region, but it's certainly not looking good.