Kotaku posted an article entitled "Japan Hates LocoRoco" where they claim LocoRoco did so bad that it's been marked down to 1980yen (about $17) and thrown in the bargin bin.
Unfortunately Kotaku didn't check their facts. The picture shown on their website is from an opening day sale of a new electronics store in which everything in the store was marked down. Nothing to do with Japan's affection for LocoRoco or any bargin bins.
LocoRoco is doing just fine as a PSP title. Nearly a month after it came out it still holds the #2 position for PSP titles in Japan behind Tekken. The picture above was taken this morning August 14th on my way to work.