The tongue-in-cheek zombie title shipped 700,000 units worldwide, more than Shadows of the Damned, No More Heroes and Killer7, reports Andriasang.
The news was confirmed by Suda 51 at a Lollipop Chainsaw Summer Appreciation Festival over the weekend.
The same event saw the debut of a new Killer is Dead trailer, which was edited by Kadokawa Games CEO Yoshimi Yasuda.
The cel-shaded trailer reportedly featured a man with a cyborg left arm and a katana in his right hand engaging in combat.
Lollipop Chainsaw sees players tackle a horde of the undead as a chainsaw-wielding cheerleader. It spent a number of weeks in the UK all-format charts in June and July.
The game features a voice cast including regular video game actress Tara Strong and Smallville's Michael Rosenbaum.
The supporting cast features Freaks and Geeks' Linda Cardellini, Shawnee Smith from the Saw series and veteran actor Gregg Henry, who plays Juliet's pompadour-wearing father.
The Walking Dead's Michael Rooker and Mindless Self Indulgence singer Jimmy Urine also make an appearance as colourful villains Vikke and Zed. In addition to voicing Zed, Urine will add his own contributions to the game's soundtrack.
> 'Lollipop Chainsaw' review (Xbox 360): Silly, short-lived fun
Watch a trailer for Lollipop Chainsaw below: