I think the thing here is that there are rating agencies already that have a strict understanding what is allowed and what not. Of course they all have a state of lawyers who would definitely not allow the game to be certified if it had a content that is prohibited in any country on the government level. The rating agencies approved the game so it is presumably ok to release such game according to laws in any country worldwide. The problem for Microsoft in this situation is that they create additional problems for themselves by hurting relationships with the devs and publishers (this publisher also has non-weird-pedo games which could be at risk now for skipping Xbox) for nothing as the game was already approved by rating agencies. So, my main point is - censorship is bad, if the laws don't forbid to release the game, it should be released. If anyone finds the content of the game weird and gross, just not buy it. And that's exactly what I would personally do.
