The exact quote, in Microsoft's content legislation, is "Your app must not contain adult content, and metadata must be appropriate for everyone. Apps with a rating over PEGI 16, ESRB MATURE, or that contain content that would warrant such a rating, are not allowed."
Additionally, the legislation says "Your app must not contain content or functionality that encourages, facilitates, or glamorizes illegal activity. Your app must not contain content that encourages, facilitates or glamorizes excessive or irresponsible use of alcohol or tobacco products, drugs or weapons. Your app must not contain excessive or gratuitous profanity."
If the report is accurate, the move will do nothing but infuriate developers, many of which offer Mature titles that are their most popular.
Written by: Andre Yoskowitz @ 11 Oct 2012 17:13