Japanese eroge developers just can’t seem to catch a break. Only days ago, reports surfaced that VISA had once again intervened, this time targeting YuzuSoft’s official webstore, leaving Japanese customers reliant on alternative payment platforms to purchase their renowned visual novels.
Now, the fight against Japanese eroge has escalated to a global scale.
The struggle for Japanese developers to distribute their adult-centric games, or “eroge,” has been an ongoing uphill battle in the global market. With Valve’s Steam store serving as a monopolistic DRM storefront for PC gaming, the company has repeatedly demonstrated inconsistent and hypocritical policies toward adult-oriented Japanese titles.
While Western-developed adult games, including those featuring highly questionable fetish content are freely allowed on the platform, Japanese developers frequently find their releases blocked under the guise of content moderation. Now, a new challenge has emerged: even those who manage to navigate Steam’s unpredictable content restrictions are struggling to access the revenue they have rightfully earned.
Valve has long applied inconsistent standards when determining what is acceptable on Steam. Many Japanese-developed titles have been banned or blocked under claims of “underage” character depictions, while Western games featuring equally, if not more controversial content remain untouched.
This ongoing double standard, often referred to as the “Waifu Holocaust,” has resulted in Japanese titles such as Angelic☆Chaos RE-BOOT!, Order Us! (Western), and Tokyo Clanpool being denied access to the Steam marketplace. Despite Valve’s claims that it does not act as a “taste police,” these games are frequently targeted for containing either pornographic imagery or even just fanservice involving loli characters.
The persistent misconception that fictional drawings equate to real-life depictions has led to numerous Japanese games being banned, regardless of whether they contain illicit content.
Now even if some Japanese games manage to slip through Steam’s wonky moderation, Japanese developers now face yet another roadblock: an orchestrated effort to undermine their financial stability.
Recent reports suggest that Japanese developers selling adult-oriented games on Steam are struggling to receive their earnings. Banks have begun blocking transfers from Valve’s US-based financial institutions, effectively cutting developers off from their global revenue streams and further jeopardizing the future of Japanese eroge in the international market.
Japanese politician Taro Yamada, a member of the Diet’s upper house and a staunch advocate for freedom of expression, has recently brought attention to the issue. Yamada confirmed that both the Financial Services Agency (FSA), which oversees banking regulations, and the Ministry of Economy, Trade, and Industry (METI), which governs the gaming sector, have acknowledged the problem. However, no concrete solution has been proposed.
When questioned about the reasoning behind these restrictions, Japanese banks have provided only vague justifications, citing a “comprehensive judgment” based on laws such as the Act on Prevention of Transfer of Criminal Proceeds and the Foreign Exchange and Foreign Trade Act.
Originally designed to combat money laundering and financial crimes, these regulations are now being weaponized against an entire industry.
The unsettling truth is that this reflects a larger trend of financial institutions actively discriminating against Japanese adult content creators. Payment processors like VISA and MasterCard have already been caught scrutinizing and blocking transactions tied to specific themes within Japanese media, particularly those involving depictions of loli characters, while disgustingly profiting from actual child exploitation on platforms like OnlyFans.
Now, Japan’s own banks appear to be following suit, reinforcing the notion that this isn’t merely a legal issue but a coordinated effort to financially strangle Japanese eroge developers, perhaps to remain in the good graces of powerful, globalized payment processors.
As if these financial restrictions weren’t enough, Valve itself imposes steep fees on game sales through Steam, taking a significant cut of developers’ earnings, 30%, with only the most successful titles (those surpassing a $50 million revenue threshold) receiving a slight reduction to 20%. This further exacerbates the struggles of Japanese eroge developers, who not only face immense hurdles in getting their games released but must also contend with excessive platform fees and potential financial blockades.
With Steam’s overwhelming dominance in the PC gaming market, developers have little choice but to endure these exploitative practices. So when Valve arbitrarily bans a game under the pretense of “child exploitation” all while allowing eroge featuring shotas or the latest “SEX WITH HITLER” and “FURRY FEET” shovelware, there are few, if any, viable alternatives.
At the very least, alternatives still exist. While VISA and MasterCard are no longer accepted as purchasing options on DLsite, arguably the largest digital platform for Japanese doujinshi and eroge, even international buyers can circumvent these restrictions and purchase their games through alternative payment methods. Meanwhile, Valve’s policies remain frustratingly inconsistent, allowing AliceSoft’s Evenicle on Steam while banning its slightly less explicit sequel.
This has led even mainstream developers to explore DLsite as a legitimate alternative, as recently seen with Lollipop Chainsaw RePOP.
However, the core issue remains unchanged, Valve’s Steam store is a global monopoly. For eroge developers, it is the single most important platform to reach a wider audience and achieve greater financial success. That is precisely why it is so damaging when Valve blocks a game, even after it has been censored. Tokyo Clanpool, for example, was denied access to Steam despite being released in a censored state on GOG.
Japan’s anime, manga, and gaming industries are internationally recognized as cultural powerhouses. Yet, while the Japanese government aims to position these industries at the forefront of economic growth, they are being actively undermined, not just by international forces but now even by domestic platforms and financial institutions.
If Japanese developers continue to face arbitrary restrictions from Steam, payment processors, and banks, the future of eroge is in serious jeopardy. Every viable distribution network is either proactively banning such content or falling victim to payment platforms canceling their services and withholding transactions. Now, with Japan’s own banks seemingly complicit in this financial blockade, developers are left with few alternatives, aside from cryptocurrency, which comes with its own set of legal hurdles and regulatory uncertainty.
Meanwhile, Chinese developers face no such obstacles. Despite the fact that adult material is outright illegal in China, numerous erotic game developers from the People’s Republic have emerged on Steam in recent years, with Valve freely allowing their releases on Steam. The pattern is impossible to ignore, Japan is the sole target of these restrictions.
Advocates like Taro Yamada are working to bring attention to these financial barriers, but whether any concrete action will be taken remains to be seen. What is clear, however, is that Japanese developers are facing systematic suppression not just through content restrictions but now through direct financial strangulation.
If these restrictions go unchallenged, it is only a matter of time before more creators find themselves unable to sustain their work, further eroding creative freedom in Japan. The systematic targeting of eroge developers, whether through platform bans, financial restrictions, or arbitrary content policies sets a dangerous precedent, one that extends beyond adult games and threatens the broader landscape of Japanese creative industries.
For decades, Japan’s unique approach to storytelling in anime, manga, and gaming has captivated audiences, influencing countless creators worldwide. Yet, as the industry faces morphs itself to global audiences, resulting in censorship and sanitization it’s losing its creative freedom and ability to operate independently.
If developers cannot rely on domestic banks, global payment processors, or the largest PC gaming storefront to distribute their work, they will be forced into obscurity, limiting consumer access to the very content that has defined Japan’s cultural influence for decades.
The issue is not just about eroge, it is about control. Who decides what is acceptable in media? Who gets to dictate what kind of art, storytelling, and cultural expression is allowed to exist?
As it stands, these decisions are being made by corporations and financial entities that have no real investment in Japan’s creative ecosystem, enforcing arbitrary and often hypocritical standards that disproportionately harm Japanese developers.
Advocates like Taro Yamada continue to push back against these restrictions, but awareness alone is not enough. Without tangible action, whether through legal challenges, alternative payment solutions, or government intervention the future of eroge, and even Japan’s creative independence is grim. If these restrictions are not confronted head-on, the gaming industry may soon find itself stripped of one of its most unique and influential artistic voices.
