Not at all, the Western branches just decided not to publish it.
And they didn't allow anyone else to publish it for them either, two offers no less.
It was selling like hotcakes for Play-Asia and still, they didn't license it to anyone.
It wasn't their pure choice considering they held popularity surveys for Western gamers and already spent money on an English translation.
So by elimination process, there was no way DOAX3 could have an official Western release.
But that's totally not banning it.
Just like when two European governments and Sony's Western divisions decided to block Omega Labyrinth despite PCube's hard efforts to actually publish it.
That's not a ban either.
The publisher is free to release the game iso for free digitally in those places (if D3Publisher is fine with self-inflicted digital piracy) or to spend the $100k budget they don't have yet, in order to port the game to PC for Steam, a service that's coincidentally rallied against for its "too lax curation" by game journalists that used to reject these games on sight.
Know what is a ban? When localization jokes that speak out about social issues are written out in more accurate subsequent translations. That's what true ban, censorship and oppression looks like. Or when an employee that goes all day on twitter about politics starts insulting consumers directly under the company's name, but is then prevented from that by the company or fired.
Uuuh you realize the Western divisions of Koei Tecmo (that also influenced Dead or Alive 6's direction) already
gave a reason?
It's wasn't money-related.
It wasn't a one-off thing either, they took pride in that position when promoting DoA6 as well.