When it comes to term “localization“, developers usually understand “supporting local language”. It is valid up to a point, but I believe localization and local gaming are far more than just adding one more language support to a game.
Make sure the newly added language is displayed properly across the game.
It is a little bit beyond just adding a language file to the code. Make sure every new language still looks good on screen, sentences fit into areas reserved for them, words fit into buttons. These checks are usually ignored and the display may look awkward due to user interface was designed for the original language with fixed sizes of boxes, text areas, etc.
Consider local gaming habits for the navigation
It may be better to order your top main menu right to left instead of left to right for Arabic languages. This kind of layout change may be difficult to implement in some cases, but it may worth the effort.
For the most efficient navigation, better to do some research on the local market.
What kinds of devices are being used? What are the popular screen sizes? Look at the most popular local websites and applications and check how is the navigation set up.

Consider local habits to increase user penetration
Make sure everything in the game is acceptable for the local culture and religion
If not, you may need to do some modifications. In a western country, you may have an attractive lady with nice boobs to teach how to play the game. In a religious environment, you may need to be more careful and conservative about the characters you use. Similarly, how many Jewish players would prefer to build a Muslim mosque to advance in a game?

Ramadan promo at Total Conquest
Get an advantage by differentiating marketing and promotional efforts according to local culture and habits
In one country gamers might like special promotions on Sundays, wherein another Saturday might be more popular gaming day. Total Conquest provides a very good example. I was surprised when they have prepared special promotions with “Ramadan” theme during the Ramadan time (assuming they did this only in Muslim countries). In fact, they haven’t created a new promo, it is a regular promo, but they have just prepared a custom image to differentiate.
By the way, I’m happy to see Total Conquest has added a new set of very useful hints and utilized loading screens better. Their hints are significantly improved compared to my earlier post about hints.

Total Conquest improved a lot for both useful hints and custom promos during last 6 months.
Localization is not limited to these four approaches, but I think you got some idea about considering local needs to improve penetration and eventually get more profit from a new local gaming market.