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You should give Peach Princess another go. They are the ones who mainly produce quality game translations and handle more complex titles. I would try to send mail directly to Peter Payne. He is a fan of these games just like we are, and puts his heart into bringing them to us. It was him with his JAST USA and his Peach Princess that opened the market, not G-Collections.
G-Collections used to be a bishoujo game import site, until one day they suddenly announced that they were going to translate games, probably after seeing Peach Princess doing well.
The ESRB rating board was just because of that one game? Interesting... Nevertheless, that rating board was a good move, or else we wouldn't see video games in our stores anymore, as people were against them because of prejudices of violence, blood and other bad stuff.
There's no law in Japan that prohibits lolis in games. There's an entity called Sofu'rin, which most bishoujo game companies are a member of, that reviews the games' content and approves it. They have certain rules, and one of them is not to show girls under 18 nude. This rule was implemented in the late 90s, though, so not all games you see have this rule followed.
Sofu'rin is kind of like the current movie ratings board. Most stores only carry games approved by Sofu'rin.
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