Why wouldn't a Japanese video game designer make video games starring Asian characters? Obviously there are exceptions, but to me it seems that the overwhelming majority of video games that come out of Japan feature characters that are white or of other non-asian races.

I know that in America, games with the "AO" rating, which entail full nudity and related sexual content, have been banned for a few years now and therefore aren't made anymore. However, what about the video games that are Japan-exclusive? Have they followed the rule as Americans have, or are they still making games that would be considered "AO"?