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Well, as far as I know, at that time Innocent Sin was harder to release than Eternal Punishment due to censorship reasons about certain things in the plot of Innocent Sin.
Atlus released Eternal Punishment first to see how it would do, and since it didn't do as well as they thought it would, they decided not to release Innocent Sin.
Thankfully, recently, we've gotten more Megaten games released here in the US (Shin Megami Tensei 3, Digital Devil Saga, and, soon, Devil Summoner: Raido), so some things have changed.