Good post. I didn't know or think about the piracy issue, but yes a problem.
Everything you said about Japan is spot on. I live here. I made a long post about it, but then decided to shorten it. (above) but after reading your accurate post I decided to post in some detail about this issue.
There is so much to say about it. The CERO Japananese censorship "organisation." is not a branch of government. Plus the people who work there are deliberately NOT gamers themselves. Amazing right?
They permit anime like games that depict **bleep** and anything you can think of. However it is deemed not to look "realistic." so those games are freely available. I've never bought such filth, but seen it, and the worst things imaginable are all there. Often by implication, or actually shown in a very anime sytle. Total hypocrites. It's insane here.
Finally, if I purchase games such as any RE games of which I have most, I ALWAYS buy a key from Gamesplanet in the U.K. This activates easily on Steam everytime, and the version is fully uncensored. No VPN nothing like that. It's legit and Steam can do that without breaking any laws. Plus CERO does not have power of enforcement at all.
But, as all their games get a rating, the makers of RE4 for instance make two different versions especially for Japan only.
The first is rated CERO D. This eliminates any blood, any decapition, in fact it makes it a different game. Not horror.
They have a CERO Z version which is described as "Grotesque version," but it is still heavily censored. Ridiculous.
I made the mistake of purchasing RE7 CERO Z version a ways back thinking that it would not have noticable censorship. Well how wrong I was. Numerous scenes are changes. The cop who gets his head chainswawed off isn't there, the camera swing, and the sound is the same but no visual. Something awful happened is all the player knows. One more example of many. In the game there is one part where there is a decapitated head in a fridge. Not particularly horrific in context of the game. In the Japanese version, no head. Just a note.
I could go on but no point. I felt something was "off," but as I hadn't played the proper version those examples I found later. I fully ended up RE7 from Steam, and removed it from my account. It's not listed on any purchase or key history. Except:
A month later I bought a key for RE7 from the U.K. Activated on Steam (always first time it works) and then I knew what I had missed.
It's a con job. Even the CERO Z Grotesque version is NOT the full game. It truely disgusts me.
Luckily on PC we can do this, for any game that is censored, and even installed outright banned games (Every single Dead Space game ever made.) The Japanese don't even know about it. They've never seen it. (well a few PC gamers in the know do as I do.)
For console players no such luck. No way around the censorship without using a VPN and setting up a fake account in a different country. Also credit card has to be in the same country making it kind of impossible, and dangerous too. Something I would never do. It' illegal and could end up in unknown consequences.
Finally. If a DeadSpace 2 remake game is made, it will not be available in any form in Japan. Period. Console players are out of luck.
Luckily for PC companies such as EA, sell such games. It's not illegal either. Steam a few years ago adopted the CERO system for their Japanese store, voluntarily. I was dissapointed when they did that. Luckily purchasing a key if legit and works fine everytime including for patches.
I have always bought DS games from EA directly so there is no issue at all. If it's a Steam game of specific genre (horror, or violent FPS) they either sell the Japanese Z version, or if Steam deems it too heavily censored to make the game play as it should, they simply say not available in your region. But that only relates to the Japanese Steam Store. There are no restrictions on activating a key for PC from the U.K. which doesn't censor games. Steam policy permits this, and how could they not tbh.
I actually got RE4 for a bargain sales price, much cheaper than Steam was selling the CERO Z version. Worked out well. Bought the key and simply activated it on Steam. So that one worked out well. However I had to buy RE7 twice. First the incomplete version from Steams Japanese store. Then later a key from the U.K which gave the proper version. The keys are often classified in Steam account page as, GAMENAME: WW version. Means worldwide version, and of course "Key activation" rather than the usual "Retail."
I've been doing that for horror games for many years, well since RE7 which is when they decided to sell the Japanese versions for people residing in Japan. Before that they ignored CERO rating as they have no obligation to follow them. But they decided too for some unknown reason.
So for me as a PC gamer it is practically speaking a non-issue. Howerver the hypocracy and inconsistency annoy me.
Anyone who comes to Japan to work or whatever reason stays a while and plays horror games, DO NOT buy a console. No dead space at all. The rest are not the developers vision of the game. Just a censored cut game - on ALL consoles.
I can't speak from experience about China, but what you wrote about, "LGBTQ+ content in games." doesn't surprise me. But one thing would probably be different. In Japan it's not a Law as such, no penalties or punishment is ever applied. But game stores (in Japan) always sell only locally made games. Same for any online purchase, so on console there is no way around it.
EDIT: By online purchases in the above paragraph, I don't mean like Steam, EA, Epic etc. I mean through the console from the Sony PS store Japan, or the local console only direct purchase method. Even Xbox (probably) hardcode digital purchases through their console to only work within Japan. If it's a banned game (DS all of them) they simply are not on the store page. I haven't used consoles for many years so I don't know the detail but I do know it is strictly console centric.
But I bet in China it is strictly enforced, as is everything the communist government doesn't green light. Luckily in Japan (for PC) it is allowed to use keys of any countries, or so called world wide versions.
One final story, that would no longer be the case. When I came to Japan I wasn't expecting to stay here for years, but anyway I brought my American Xbox 360 with me. I couldn't play any Japanese game on it because of Region locks, so I bought disks (no digital downloads at that time) from Amazon USA. They play fine. I played the very first Dead Space game on 360 with a USA region disk, and USA 360.
It wasn't until years later that I even knew Dead Space (2008) simply wasn't available in any Japanese game stores.
Now buying a USA console would work for both Japanese and other countries games as long as the developer hadn't region locked the game. But regional censorship for consoles is done on several levels. (I don't know or care about the details) but any censored or banned game on console, disk or digital download, is strictly enforced in the same way that Region locks are.
Thank goodness none of this nonsense applies, or could be implicated properly on PC.