Speaking of MK11, while the developers were very eager to erase anything that might make female characters for male players, they were met with CERO rating board demands that the game's violence is too excessive and decided to cancel the Japanese release altogether. Interestingly, while this system doesn't apply to PC releases, the Steam version was geoblocked anyways.
Some Japanese developers adapt for this with "Grotesque editions" sold behind the counter or as DLC for more censored mainstream versions (Resident Evil 7 most recently), locking the camera angle above gory parts (Metal Gear Solid V), replacing dismemberment with broken dark limbs that are still attached (Dio's death in recent JoJo games by Bandai, Dragonball Xenoverse, No More Heroes)... Yet Western developers tend to feel strongly about the issue, and refuse to accomodate much for Japanese censorship the way they do for Europe or China, with some exceptions like GTA PS2 games (since it was localized by Capcom, a Japanese developer) or the Witcher 3. So you would see most Sony PS4 games replace the scenes with black screens and things like that. However skipping releases are a more uncommon development.
While this could be understood as sticking for their creative freedom, it's ultimately yet another attack on CERO which Sony California wants gone and replaced with a "Western standard" they are able to control (the ERSB is after all beholden to the Western game industry whims, as its origin story and very recently dragging their foot on condemning microtransactions revealed)
As it is, CERO is a videogame rating established since 2002 applying to console games (not PC), that replaced various console specific rating systems (one on Sega consoles allowed notably for the same minmal censorship with some bare nipples exposed, as well as body horror and blood as seen in the Linda Cube JRPG, Snatcher, among others... content no longer allowed at all by CERO) with notably stricter guidelines than other rating boards... at least until Sony California begun their recent policies and China became a factor. Yet for better or worse, CERO was known for annually polling customers, parents, and members of the general public for opinion on their guidelines, and even relaxed it slightly just after 2007, then 2016, for some aspects.
Sony California has been trying to undermine Japanese rating boards, markets and developers for a while, and adopting pretty heavy-handedly a one size fits all policy hoping that all markets align themselves on US tastes. Would the CERO disappearance in its current form help creative freedom or would Sony instantly impose a foreign standard the Japanese have zero say in to fill in the power vacuum?