Yes, games were censored, but they stayed the same for the rest of the world. Its a simple value change to make the blood green, so it was easy to pull off. For companies vying to get into China, they have to change the whole product for nearly everyone to get accepted, or have massive amounts of that product censored, and made to be a lesser product as a result. For those companies, why would you risk not only being rejected but having your movie gutted when you can just rewrite the whole thing to work with what the Chinese want? Thankfully videogames are not nearly as concerned with getting china dollars as movie studios so we aren't getting that kind of widespread global censorship yet. But really, its only a matter of time unless something cracks.
But still there are "international" versions of content and some "special versions" for some countries—and not an ultimately "pre-censored" version that would "please everybody" (or better said, all boards of censors at once regardless country).
For US audience you need for example to censor nipples. In Germany we make jokes about that. But here a swastika is a very big problem, US people would not mind OTOH. Making a Mohamed joke will get you banned elsewhere; and so forth.
So I don't really see an acute danger of "pre-censoring".
The actual scandal is that the content industry just obeys all that madness. Of course, because they're only interested in the money. The actual messages are completely irrelevant and get changed fundamentally at a whim without remorse. That's the part that makes me think.
