If we're just talking about outfits then I don't see a big problem, plenty of young girls already dress like that anyway. I'm definately not trying to see any sexual activity between minors though, I think it would be unnecessary to put that in a video game.

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Child porn is illegal but sexual content like skimpy outfits and such isn't so it's not a legal issue here. It's a moral one really.

If it's fictional, it doesn't matter even if it's hardcore pornography. No one's getting hurt.

That said, one should carefully consider the situation before deciding to create anything like that in the first place.

Censorship is never a good idea (with absolutely no exception), people should always be able to know the truth and to make their own decisions and judgments. Censorship never solves the root-cause of a problem (if there is any problem at all) , it just tries to hide it.
People should always be be able to think outside of their own limited cultural boundaries and respect that there are many other views on each matter. Cultural standards in one country can also heavily change over time, think about our views on slavery, the right for women to vote, death sentence or gay marriage. Nothing in this world is given or fixed, even cultural and religious standards and morale are arbitrary and will completely change over time.

I worded that poorly. Nintendo is not breaking the law per se. But it will lead to an inevitable bad publicity and unnecessary headache. Someone like Anita is gonna make a video that goes viral and people will get increasingly anal and so on. In a way, Nintendo has to do something about it for their own sake.

Do something that doesn't make you a hipocrite. Because censoring it in the US/EU, but it's fine and endorsed in JPN sure makes Nintendo that. It's kind of insulting to the Japanese. Were we can't accept and respect another cultures views. We have to cover them up. And pretend a part of the world doesn't find this wrong. Because maybe Japan gets drawings and CGI are not real people.

It's usually because morality is in play. My stance is: If the character is fictional. Being game, CGI, drawing, animation. And it involves lolicon. I'd accept it. To me it's just another thing someone wants to fap to. Let's be honest here. Anything in your room, as you read this. Someone will fap to it. No matter how dumb you think this statment is.

There is someone out there fapping to a keyboard. Lolicon is not real. It's a fantasy. Would you hate a person who is happly married for 50 years, has children. But has a room of lolicon? Did said person do ANYTHING social wrong? No. You can mark said person as weird/perverted. But not a pedophile. Since no real action of it, or abuse, has ever taken place. Because if you want to start covering this up. You have to contiune your stance to other areas. Take this photo.

If I was Nintendo? I'd absolutely do it. I'm a publicly traded company with a family friendly image.

Should it be censored in general? No. Censoring it seems dangerously close to legislating thought. No actual child was harmed in the making, and I don't believe the case that it will cause real harm can be made. So, there seems to be no logical reason for it to be illegal.

US and Western countries most of them are hypocrite, they censored games character while many kid and teens walking half naked on the summer.