GAMER LOUNGE 20XX (NO CASUALS!!)

[psychospacecow]

I'm afraid I don't quite follow. Wouldn't that mean that you can get away with certain things if the government isn't controlling it? Or does even ESRB have rules about games that fall under various ratings?
Or are companies just that fickle? That would be surprising considering how many other games there are with super-sexualized characters.

Companies typically want to abide by the ESRB because it significantly supports them in selling their product. Many vendors will not stock products not rated by the ESRB effectively making said product a specialty item. It does offer more flexibility.

So, in other words, ESRB is the reason for the censorship? Am I understanding correctly?

Sort of. It is purely of the creator's discretion to alter their product to meet the standards of a certain rating. Censorship is usually enforced by an outside force, but game creators do not need to go through the ESRB or change their games to meet a certain rating. You don't really get that liberty in most places and the ESRB is overall a positive force in that regard.