What country that game developers generally try to cater to has the harshest game related regulations?
China is, by far, the harshest regulated gaming market by far. The CCP has a bunch of requirements for any outside developer to sell or operate in China. Here are some of the rules in order to publish in China.
No external company can operate autonomously. All game companies must partner up with a domestic Chinese company to distribute in China. Furthermore, the Chinese government generally plays pretty loose with intellectual property laws.
There is a list of specific content restrictions that must apply to the game. Anything that disparages the Communist Party, Chinese History, "undermines social stability", etc. is barred. The vague wording is purposeful; the Chinese censors wield extremely strong powers. China also requires all depictions of global borders to follow their rules, including the famous "9 dash line" that declares the South China Sea as Chinese sovereign territory. The nation of China cannot be an enemy in any game.
Blood of any color and depictions of gore/bones/organs are banned. Skeletons, undead, zombies, ghosts, necromancy, etc. are all banned. Enemies are not allowed to spawn rising from underground or from graves. Bodies of defeated enemies must despawn, they cannot pile up. Corpses are not allowed as set dressing. We may not depict drug use, certain kinds of crime and criminality, LGBTQ themes, nudity, or sexuality. Men depicted in an effeminate way are banned. This includes symbolism and background textures in game.
Depictions of gambling (specifically things like cards, dice, poker chips, roulette wheels, casino environments, etc.) is forbidden if it has direct links to monetization. Non-monetized gambling is ok. All forms of drug use are banned.
Also, Xi Jinping really hates memes that compare him to Winnie the Pooh. As a result, all depictions of Winnie the Pooh are banned in China. I am not joking, this is 100% real.
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