Was it? Today's games have nudity on Nintendo Switch and harsh Politics, Nintendo and Other Console except the Sega didn't have full blown nudity or politics this harsh , sure there were 8 bit nudity on NES and Politics in old generation I started reading in 2nd grade I think? I never used the internet until 2004 I think? life was care free we had basketballs and played with our neighbors, not this generation we don't go playing our sports in the playground we are in our phones we don't know our neighbors names we dont hang out with our neighbors back then in the 90's almost everybody knew their next door neighbors name and played with their kids PS1 and enjoyed borrowing games . this generation It's way different everything is harsher and theres alot of racism more so than it was in the 90's and saying the wrong thing online really gets the wrong person to explode and put you in their with hitler, Stalin, and Putin the real monsters.
The reason we have the ESRB is because Congress held hearings on video game violence in the early 90s and told the industry, "Either you regulate yourselves, or we will regulate you, and you won't like it." Nintendo chose a Hays Code/Comics Authority Code approach to game content, which resulted in them losing big time on Mortal Kombat I, which was one of the biggest third-party games of the 16-bit era.
Beyond video games, as someone who was born in the late 1970s, it was not a more innocent time. The first big news story I can recall in my life was Rock Hudson getting liver cancer and then finding out his cancer was caused by AIDS, and I also remember Iran/Contra and Bork's nomination pretty well. We also had a raging crack cocaine epidemic and historically high rates of violent crime to deal with back then.