Not only were the games localized, but so was the Master Component. Their variation of the original 2609, the 5368, even had localized text on the top of the unit, but was still tagged as being from Mattel Electronics. The documentation listed Digiplay as the distributor or some such, I think. The Intellivision II was also produced by Digiplay and even had the Digiplay logo on the front of the unit in place of the Mattel logo.
A: The games released in Japan are identical to the American ones. There is no region lockout because there is only one region. Therefore, the Bandai can play games from any regional market, just like any Intellivision.
1982 saw many changes in both the videogame industry and the Intellivision product line. A voice-synthesis module called Intellivoice made sound and speech and integral part of game play, through the use of special voice-enhanced cartridges. The Intellivision II was also released this year, which one company spokesperson described as "smaller and lighter that the original, yet with the same powerful 16-bit microprocessor". The new console was more compact than the first, and its grayish body made it look more like a sophisticated electronic device than the original design.
1983 brought more promises from the folks at Mattel, the most significant of which being the Intellivision III. This was shown off at the January 1983 CES show, and lauded in the videogame magazines for many months afterwards. In June of 1983 at the Summer CES show, Mattel announced it was killing the Intellivision III and including most of its high-profile features into their long-awaited computer expansion, the Entertainment Computer System.