From Kotaku:
 
For the past few months, various comments from Sega have people hoping for a Western release of Yakuza 3 bummed. Today, however, things are sounding a little more optimistic.

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.
 
 
Atlus?
 
Considering that they posted on the official Sony blog, it gives me hope there's at least a kernel of truth to this.

I wonder if they're just gonna skip bringing Ryu ga Gotoku Kenzan over, that came out before 3 in Japan anyways...

The fact that they actually went as far as to comment on it on the official Sony blog leads me to believe that it's still at least 50/50

" yeah ryu ga gotoku kenzan will never come out here. but for yakuza 3 its obvious there will still some small hope but i doubt it will come out because Sega are a bunch of douchebags these days  "

I've already bought and played through it, because I thought they said it would never be localized. But I can understand not doing it if the demand and sales for it are really low. I don’t know how well the other Yakuza games sold, but I imagine low sales in the western market is the main reason they’re not doing it.

"

I've already bought and played through it, because I thought they said it would never be localized. But I can understand not doing it if the demand and sales for it are really low. I don’t know how well the other Yakuza games sold, but I imagine low sales in the western market is the main reason they’re not doing it.

"

Followup with a kind of confirmation
 
 http://www.1up.com/do/newsStory?cId=3176109

You beat me to it.
 
 Just a few days ago Sega rep Aaron Webber commented that the possibility of Yakuza 3 coming to the U.S. still exists and that it's a subject discussed quite often at Sega. Today we can do one better: we've learned that the PS3 exclusive is indeed coming west. According to sources close to the project, Yakuza 3 is currently being localized for release in the U.S. and European markets.

And while this is still not the official confirmation many are seeking, it's definitely reason to keep up hope. We anticipate more news on this front will be coming from Sega -- or another publisher, were the game shopped around -- in the coming weeks or months. It's possible we could even hear sooner: the Tokyo Game Show occurs later this week, and if you remember, Sega announced Yakuza 2 for the U.S. at the 2007 show.

In other Yakuza news, it's also only a few more days until Yakuza 4 is revealed at TGS. 

Hopefully that happens. I have no interest in Yakuza, but I'm sure it would make a lot of people happy.

I heard a rumor that Ignition might be publishing it, which if there Muramasa localization was any indication (Japanese voice w/ subtitles only) would be a good choice.  Sega's own localization of the first Yakuza was all kinds of awful.

1UP already confirmed Y3's coming over here 

" 1UP already confirmed Y3's coming over here  "

No, it doesn't. That's why everyone wants an NA release.