Key Takeaways
1. Platforms like Steam are banning games with adult themes due to pressure from payment processors, despite many games adhering to guidelines.
2. Niconico’s unique social features attract users, but the platform suffered financially after restricting mature content to appease credit card companies.
3. Niconico’s revenue is declining, and users are exploring alternatives with fewer content restrictions, reflecting a broader trend in Japan against risqué material.
4. Critics are concerned about censorship on platforms, arguing that not all banned games exploit women and girls, despite claims from organizations like Collective Shout.
5. Steam has recently stopped accepting PayPal in several countries over adult content concerns, complicating purchasing for gamers, even for non-adult games.
Much of the recent attention has been on platforms such as Steam, which have started to ban games containing adult themes. Payment processing companies have pushed for this censorship, even though many of the games followed their own guidelines. The Japanese video-sharing platform, Niconico, shows how resisting credit card firms can negatively impact a service.
Niconico’s Unique Appeal
Even though YouTube is available in Japan, many users choose Niconico due to its distinct social features. On this platform, users can leave comments on videos, which then appear on the screen while the video plays. According to Automaton, most payment processors were not available for use on Niconico between May 2024 and February 2025. After the site restricted mature content, credit cards, including Visa, started to return. Unfortunately, this disruption caused serious financial harm to Niconico.
Decline in Revenue
The platform, owned by Kadokawa, is seeing slow growth in premium memberships. Consequently, its overall revenue has taken a hit. While there may be a chance for recovery, some users have already turned to other options with fewer restrictions. Moreover, Niconico isn’t the only Japanese site facing backlash from powerful payment processors. Manga Library Z, which featured out-of-print manga, had to close down after credit card companies raised concerns about its content.
Rising Movement Against Risqué Content
In Japan, there’s a noticeable trend of moving away from accepting risqué material. The situation is alarming, as Niconico, Manga Library Z, and other websites have removed videos and images that did not violate Japanese laws.
Censorship Concerns
Critics have voiced their discontent regarding censorship on platforms like Steam and Itch.io. The organization Collective Shout claims to have pressured payment providers to exclude illegal games. However, detractors argue that not all the games in question depict the exploitation of women and girls. Mastercard has denied yielding to these activists, but that hasn’t swayed the skeptics.
Future Implications for Steam
While it seems unlikely that Steam, a highly profitable platform, will face the same issues as certain Japanese marketplaces, it has recently stopped accepting PayPal in numerous countries due to concerns over adult-themed content. Gamers are increasingly finding it difficult to make purchases, even for family-friendly games.
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