On Facebook, they tried a test and asked fans to help translate some sample text into Spanish. Within an hour, over 50% of the text was translated. All 1,000 lines have been completed now. If you want to take a look at how localization works (it’s one giant spreadsheet) check out this Google Document.
Seeing companies work with fans to translate games is an interesting idea. Albeit more common with online PC games, occasionally fan translations are licensed and used for console releases like Ys: The Oath in Felghana from Xseed.