I love seeing people getting worked up over stuff like this. Comments about totalitarian governments and censorship get tossed around and righteous anger runs hot. Well, someone please explain to me how this is any different from the shitstorm in the US over Janet Jackson's tit being shown at the Superbowl. In both cases we the government stepping in and doing something to "protect the children." The FCC came down hard and renewed their fight against "indecency." So while the banning of ganster games seems crazy to people outside of China, there are many people in other countries who think that banning female breasts is just as absurd.
Please note, I'm not saying I agree with the actions of these governments, I'm just pointing out that every group of people seems to have their cultural taboos.