Well, I think they have an overall 'badness' cap rating.
Say for example, a game can't go over 50 point rating. Nudity = 10 points, swearing = 10 points, drugs = 10 points, violence = 10 points, sex references = 10 points, stealing and criminal themes = 10 points, etc.
So, they are capped at how much they can fit into a game, and they've gotta cut the non-essential bits out to make room for the core elements that make the game what it is.
That's my understanding of it. Of course the above example is totally made up, but gives you an idea.
19/05/2008
In front of my PS3