Not really the same situation at all. Nintendo don't really have a choice but to censor this one artwork design because it's an 'E' rated family-friendly party fighter. If it was rated 'T' with a older target audience like an actual Xenoblade game, Nintendo wouldn't have to touch it as they won't mind it got a higher rating cause it's not aimed at children unlike Smash.

Sony on the other hand enforce their own changes and rules on third party games and developers past what the official video game rating boards already approve and allow.

is that a direct rip of the image used in-game? if so, that just looks awful. censorship aside, the entire image has just been darkened, and it does not look appealing when looking at the original, which is much more bright and vibrant

where is that guy that was insulting sony saying nintendo is non sjw and doesnt censor shit since 20 years ago lol
all those saying she looks better now and more practical... what??? no she does not you are making excuses for BS censorship

another character censored 
https://nintendosoup.com/fire-emblems-camilla-is-censored-in-super-smash-bros-ultimate/

I also agree the design is better lmao. It looks more practical.

censoring your own game vs censoring the games of others

try and spot the difference 

censoring is censoring there is no difference covered tits legs bras etc are covered tits legs bras no excuses 
STOP THIS NEW TREND

...there's no difference?

Uhhhh

If you were just taking this from a general "censorship sucks" perspective I'd agree, but - you're using a situation in which Nintendo is censoring a property (Xenoblade), that they own, for a crossover game (Smash) which is for a much younger audience (E10+) compared to the original property (Xenoblade), which has been left untouched in recent memory in regards to it's own game - as justification to "call out" people for being hypocrites for being mad at Sony for censoring third parties and overextending their hand. 

It's not the same thing. But yes, censorship does suck and I don't like this design at all. 

i agree with everything except the fact people act like only sony censors and thats not true this is a prime example even if its for their exclusive title and a dumb rating
people argued with me that spiderman did not sell more than god of war due to one being teen the other mature they said ratings do not mean anything in sales so why is nintendo crying about some tits and legs if its not about fears of it selling less if it was rated teen and had no censoring on bayonetta, xenoblade and fire emblem girls.

Yeah, the correlation between ratings and sales is a bit hard to figure out. I mean, Super Smash Brothers Brawl did amazing at it's rating of T. Even if 4 outsold it (between two different versions), I have a hard time believing Smash would be affected much by a T rating. Maybe Nintendo expects it to sell so much (20+ Mil range) that they want to make that sales ceiling as high as possible. 

i believe the rating does affect sales in some games but when you look at GTA V that all goes out the window lmao seeing a 5 year old playing it and shooting up everyone on the street or chilling in a strip club i wonder why would any company fear a T rating at this point