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Man, they didn't even bother to add English like SRW.
another possibility is that they don't want a backlash happening for working underaged children
Even Monster Hunter Rise twitter reply is full of em, complaining about pants or shown thigh/legs
I kinda doubt that. IIRC, Love Live songs is also under Lantis's umbrella, but it got localised just fine. I think it had something to do with the niche that iM@S fills (especially the youngin' idols and the option to get closer to those you prefer), that won't sit well with Western audiences.
That being said, though, I doubt Bandai Namco is the type of "bow down" publishers who don't want to get in trouble with the meddling Western kids, so we can ignore the risque niche of the youngin' idols for the sake of the argument. However, many people said that Bandai Namco isn't exactly the keen type in terms of localisation or releasing stuff worldwide.
Unless iDOLM@STER is somehow published by Square Enix, you're SOL if you're outside Asia. (Square Enix is more keen on localising their Japanese only games, especially in recent years, contrary to Bandai Namco)
Console Idolmaster always had the "touch" events where if you poke the idols on different parts of their body the react differently, and yes you can touch them on the chest. The VAST majority of the idols in the game are under 18 - this is a problem which Bamco had always acknowledged as a hurdle when trying to bring the console IM@S games to the west due to a deeply rooted cultural difference.
So it's not SJW or just California as conservatives are just as touchy when it comes to these ideas because countries like the US is easy on violence but extremely sensitive with sex. Conservatives in the US don't even want teenagers to learn sex-ed in school. Being sensitive with potential child porn - even fictional - is an issue that is at the very foundation of western society. The conservatives will have as much of a field day on the content of im@s as well. So don't pin this on SJW or "woke" culture.
(I'm assuming by "Woke" you mean "SJW".)
...you picked a very bad example considering monster hunter rise is actually releasing in the west. SJWs don't stop a game from releasing or even stop people from buying the game. Idolm@ster has a big fanbase outside of Japan that is active and participates a lot, showing that SJWs just. don't care about idolm@ster. CG's Viewing Revolution on the PS4 was localized, after all, same for Shiny Festa's games on iOS.
The only thing I could see people complaining about is the absence of SideM, which is something not only English fans do, yet Bamco doesn't seem to care, therefore it wouldn't hurt the sales.
It doesn't matter, politicians on both sides can and will make it a scapegoat target. Conservatives claims they want small government and individual freedom, unless they suddenly feel you shouldn't have it just the same.
Bamco just don't want to take the legal risk as they are a huge company with hundreds of IP under their name, it's not worth it to risk their entire company's portfolio for just one game. Tarnishing their brand means they jeopardise other IPs like Tekken, Tales series, Soul Calibur, Gundam and a crap tone of other stuff. They aren't going to do it just like Disney don't do R18 under their Disney brand.
Because Steam has been getting more and stricter region restricted in recent years.
The producers of IM@S had specifically said the issue in bringing the game to the west is the "touch events" - these are time-limited events where during a dialogue phase you get to move a pointer over any part of the idol's body and click on it leading to a branching of the dialogue tree. For example say when you have a conversation with the idol and you hit the "touch event" branching point, you can then point and click on her hair or on her face, and yes even her chest, which will lead to different outcomes. Sometimes the "correct" answer IS actually moving the pointer and clicking on the chest (a common trope may be if she's not doing so well in her work, and you "point" to her chest leading to a conversation about her not putting her heart/feelings into the work), but other times they end up being the wrong choice where you actually make sexual comments or even inappropriately touching them. But either way, it's a central gameplay mechanics which is console game exclusive to the main titles and haven't existed in the mobile games or the branch-off games.
Due to the entire premise of the game - where you play as a budding young male idol producer managing mostly underage teenage idol girls (most of them are under 17, some are as young as 12 and 13) - the "touch events" and some of the branching dialogues would easily constitute as sexual harassment or even assault from a position of power towards underage girls, the entire concept of the game is a huge target for being unacceptable content in the west in general - not just woke or SJW, as you aren't going to find any conservatives defending a video game where you can touch underage girls (even when they themselves are often caught doing it in real life, lol). This is why Bamco don't want to bring the game over to a western audience because this isn't like a GTA "hot coffee" mod which even an unofficial mod of nudity still raised a bunch of backlash from all political spectrum, and it's something that is central to the gameplay and they can't edit it out without destroying what the console games were about and jeopardise its core fan base in Japan.
People should be able to gift this game to friends no problem. I've been gifting Japanese games to my friends and the most recent one was like two months ago (Street Fighter 30th).
Steam being "stricter" is about those who try to get games from regions with low prices. But Japan is the most expensive region so they don't care much if people want to gift games away from Japan.