In the case of XCX, the game included four characters that were originally DLC in Japan, so that may or may not have covered the what was taken out, ie. Lin wearing and under outfit due to her age and boob sliders.
Censorship has been around for as long as we're able to communicate.
While games that come from Japan have been censored it's due to the sexual nature involved, and Japan embraces that to an extent, but they're not exempt from censored content. Take for example, Call of Duty, Gears of War, and even Metal Gear Rising: Revengeance(made in Japan) were changed to lessen the violence or changed to where dismemberment was minimal. The Last of Us was censored where decapitation was not possible, but changed to be a head wound.
In the US, same-sex marriage was only recently approved, but the concept in Japan is more strict so it was altered somewhat for the localized version allowing for changes that wouldn't have made the cut initially. We're also in an age where feminism and equal rights look on media that depicts women in any capacity that can be deemed compromising or subjected to sexual conduct to be a blight in todays society and have an outcry of misogynistic agendas.
However you look at it, censorship is neither really good nor bad, but adjusted to how each region views these types of media being brought into their country. Australia, however, is a different story.
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