Frankly removing the outfits didn't add any value to the overall package and felt more of a preemptive reaction to the assumed backlash of SJW's always looking to demonize gaming as a anti women environment.

Which considering the vast amount of strong women found in Japanese popular culture those very people would take pause before their knee jerk reactions. Hyper sexualized women in the east have a entirely different identity then the same in the west. Just because we're prudes doesn't mean that should be forced on others ideas. We all have a choice whether to purchase something that offends us or not, that is truly the only censorship that can be accepted in the gaming industry.

Clearly there is data to support it. Localization isn't cheap. Companies don't spend time, money, and resources making these kinds of changes unless they are sure it will have a positive effect on their bottom line. You may not have the data. That's fine. You're not meant to. They do though.

XCX not setting the world on fire only goes to show how much worse it would have sold if it got stigmatized as "that creepy japanese game" instead of just "that niche japanese game" as it likely would have without them.

Well, you certainly have far more faith in Treehouse than they've ever earned (especially considering Nintendo's history with needless censorship).

You can just as easily make the argument that people skipped it because of the changes they made to it. The people who care enough to avoid playing Xenoblade because of boob slider in character creation were never going to buy the game in the first place.

Neh, they got the wiiU emulator running at near 60fps for Mario 3d World

https://streamable.com/853r

Granted various things haven't been implemented yet like proper lighting but hey! Its something! @_@

It will still take a while though like you said, specially for xcx, but they are certainly making progress considering it could bearly even even load the title screen since it was "released" around October 2015!

I really couldn't care less.

It doesn't matter if there's data to support it or not. It's a risk bringing anything overly sexualized to the overly conservative US market, especially with an underage girl involves. Bayonetta only gets away with it because that's insanely excessive to the point that it's parody. If Nintendo leaves everything as is, there's a chance, and a good one given the US media's love to hate on games, that some pundit goes off on Nintendo for making child porn, and then there's his huge travesty and white suburban soccer mom's vow to never buy a Nintendo again while their kids are in the background jerking off to CoD and Mortal Kombat. 

It's a risk. There doesn't need to be quantifiable data when you're talking about risking brand security on something that you wouldn't even know is missing unless you followed the game from minute one. It doesn't matter if it's a niche game or a huge mainstream one, any Nintendo game that took this risk would be punished. 

You mean localization.

Localization is the adaptation of a product or service to meet the needs of a particular language, culture or desired population's "look-and-feel."

Honestly, this just isn't true. It's a stereotype that gets parroted without any recent backing for it. Not to mention that there are several other games with the same rating, with very similar things that are just fine. If this was a game the featured Mario, you might have an argument for actual PR hit, but a niche game that very few people care about? 

 The last time the conversation came up of holding things back from conservative market, it was Jack Thompson trying to ban GTA for being too violent. That had far more traction than any demand to have Nintendo's game censored.

a virtual character, also does this justify the removal of the breast adjuster and censoring the fundoshi?

Flawed logic. Everything in video games is virtual, you might aswell say that age ratings in general should be removed completely because games are just virtual regardless of the imagery and ideologies they depict.