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Kinda I guess but not for long. Mortal Kombat was a big deal, I remember walking into a 7-11 during lunch break one day and seeing it and thinking "whoa". Also for whatever reason when (I think) Cid said "shit!" in Final Fantasy VII that was kinda cool, lol.

Generally speaking though the "blood is cool!" stuff kinda died down when Nintendo opted to allow blood in Mortal Kombat 2. That whole thing became a bigger issue when Nintendo denied it.

The first time I saw Grand Theft Auto (on PC) I remember thinking that was overboard.