I can't remember what game it was but some game devs were trying to design their E3 booth and the E3 people said it was unacceptable. One of the things they had up was a picture of two dead, naked women. The devs found away around the rule, mutilate the dead bodies. Instantly approved.
Every other place in the world tries to ban violence in their media and is perfectly fine with sexual content. America has no problem showing little children gore but FLIPS OUT when a nipple pops out.