I'm fairly sure the project Senran Kagura 7 was scrapped by Takaki, but the guy wanted to cut ties with the franchise and Sony being suddenly dumb was a convenient excuse to wash away the development hell that plagued that sequel and save face. Literally and absolutely nothing to show off for a year
since the announcement in 2017 (it was
teased earlier too) besides
one 3D model of Asuka until that news piece with Sony. It was probably possible that certain elements like touching the girls in the change room could have been gone due of the new policies but nothing that prevented the game to be entirely made in the end especially when his other project Kandagawa Jet Girls released last month on the PS4. The ninja girls with big chests were made available as part of the swimsuit DLCs (
this and
this) for that game too.
Senran Kagura had far bigger problems than the censorship itself to stay afloat frankly. It started as a good compromise between fanservice and gameplay on the 3DS but the success of Shinovi Versus on Vita strayed from that path and it became nothing than a fanservice franchise in detriment of dumbed down gameplay, tons of DLCs and turning the former characters into stupid parodies of themselves. The cool original monster designs (see below) were gone and replaced by generic faceless mooks, and finally Yumi being the new face of the franchise due of her popularity in Japan didnt help things either.
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And I disagree on Marvelous' record as the company published good games like Rune Factory, Story of Seasons, Soul Sacrifice, Muramasa (after Vanillaware was almost killed by Atlus due of the delayed Odin's Sphere release on PS2) and Fate/Extra. XSeeD is a different story however.