Well, I'm Italian and I think that, while I agree for some parts with his reasoning, generalizing the translation process as a waste of money is a bit stupid. Sure, I see the point coming from a software house that develops sort of "niche" games but try, for example, to tell EA or Ubisoft to stop translating games into Italian because it's a waste of money. They'll probably laught at you.
As many others have pointed out the biggest chunk of money to be found in the Italian gaming market is found in AAA games. If they a lot of advertisement support, even better. The average guy that buys games at Gamestop doesn't go there to buy a Paradox game or some unknown indie game. Those are the players that are fine with a game in English instead of a piss poor italian translation made in a rush to save money (and it happened, even from some prominent software houses). The thing is, most people think they are entitled to a translation because it's being sold in their country.
They underestimate the costs and time required to pull off a proper localization (even more if they plan to dub it).
Take for example the Yakuza series: the first (or even the second, don't remember) was localized in Italian and it sold an embarringly low amount of copies and with the sequels they dropped the language, which is to be expected, considering it's a miracle they even get translated in English in the first place. Now, either you're one of those that understands why they did that and you still support the company and buy the game because you like it, or you're one of those that outright refuse to buy it because "non c'è l'italiano e allora scaffale".
For small companies, spending a lot of money to hire a team to work on a translation just to sell maybe 200 copies more simply doesn't make sense. And they are right. There's no reason to feel treated like the 3rd wheel of the gaming world. For the same reason big companies will keep translating big budget games in Italian because the profits justifies that.
Reading fellow italians insulting him for his comment just makes me sad. Sure, he could have worded it a bit better but stop acting like little kids and it's fucking 2016. How could you not understand some basic English, especially if you like videogames? Don't buy his games and take some English classes I guess, maybe you'll stop complaining then :O