http://tale-of-tales.com/blog/2009/04/07/mature-teaser-no-penis/

Really what kind of bullshit is this ? And why the hell they would need to remove it for game that is targeted at "Mature" audience?

Stupidity of big corporations thinking is truly hard to understand at certain times.

doesnt really seem like a big issue.

Truthfully, I see it as a 1-2 punch that led to this. First, Ubisoft looks at their target market for this game. Being afraid to "offend their masculinity", they go on the assumption that most guys don't want to see a penis, so they remove it. (A logical decision, yes, but an atrocity to art.) However, there is this small chance that Ubisoft didn't notice (or care) at first until someone at the ultra-conservative ESRB/PEGI saw it. (I'll lean more toward ESRB caring about it, especially with all the stigmata about it in the USA.) Being threatened with an unsellable AO/18+ rating if they left it in, they went and removed it. Truth be told, though, I think this is less likely, in as such that the rating boards never saw said item, since it was already removed via the first reason.