I wonder how many Japanese developers actually understand that all the pressure to push gender ideology, remove fanservice, add infinity niggers etc does NOT come from ordinary Americans and Europeans, it comes from a loud minority that just happens to include game journos, other media scumbags and politicians. Less niggers, more anime tiddies and an end to Body Type A & B would in no way hurt game sales, quite the opposite, especially since game journos kvetching about "Racist, sexist, trannyphobic" games would only provide free advertisement.
I think it comes down to the fact of control. This is why they say it's a religious concept because the whole DEI or whatever name they will change it to next is like a religion. It's basically a set of rules, evil under the disguise of good aka censorship but for false good of others, 20 years ago it was Christians to "protect the kids", today it's changed to Far Leftists who are feminist in nature and hate men because it's fanservice that is evil because they must protect females and must protect Non-Binary and Trans by eliminating gender. They hate Japanese people. The end goal is their idealogy not what is good for the consumer and not to respect Japanese culture or people. They are evil like a god disguised as good willed.
If you disobey the doctrine you have Western Branches(which are controlled by them), Journalists, Social Media attack you as is the main issue here and even SBI founder mentioned this before and I paraphrase "if they do not agree we will silence them into submission " if this is not a religious cult I do not know what is.
Note: Japan does know of Political Correctness because of Go Nagai with Anime and Manga but to them this is a recent thing with Video Games and other media. They are learning about it slowly.
You don't even have to cite true mega hits like Black Myth: Wukong as "anti-Woke" success stories, just the fact that the Sweet Baby Steam Blacklist has 443.000 followers, while Concord only sold 25K copies and Dustborn even worse shows that gamers who are PASSIONATELY anti-ESG, anti-DIE etc outnumber the SJW gamers at least 10 to 1, and we WILL boycott and create tons of bad social media press for games pandering to that crowd.
This is a positive thing nobody says this is not. I think the fact that we are winning says a lot about how bad broader society sees this as it has seeped into everything from Universities, Corporations, Video Games, etc that it is awful how quality has declined. But the main point he is making is that the Western Branches have the say because Japanese market is no longer big and our market is, Japanese market does not sale as much as the Western Market. The market is controlled by them right now so they can do whatever. Add on top of this the Sony Policies Japan is getting crushed and creatively stifled to where it's effecting their home country now and no longer just here.
The best case scenario is that people withhold their purchases of any games that are censored and make it clear that in no certain terms that if it does not have AI Translations and it is not Uncensored from the Western Branch the games will not be bought on social media and to the Western Branch. It's up to us as consumers to make those decisions and it's working like you are noting. We are pointing out the signs and the people behind these things.
By the end of the day it comes down to money and it comes down to the fact we need to keep finding these people, name them, warn everyone like we have been doing and begin to starve games of money if they do not cater to us and find better alternatives games to buy from Japan like Indies and Smaller companies, ignore popular AAA companies if it does not cater to us or games that are not catering to us. It's the same for all the other things mentioned. If they lose so much money it becomes unsustainable and they hear what the problem is it will change management and executives. We just need to keep doing what we have been doing and Yuji Hori was just getting the word out for us and he is a big name that everyone will listen to where broader society will listen. It helps to grow our numbers and explain what is going on.
Resetara even has gone as far to say it was mistranslated or misinfo on their thread and Reddit even had to censor threads talking about Censorship of the game. But we know they know they are in trouble.