Then:
Nintendo: Games are for kids!
Sony: Games are for everyone.

Now:
Nintendo: Games are for everyone!
Sony: Games are for adults.

To be fair the Nintendo third party censorship era was before ESRB was a thing, which is mostly the 80s and early 90s. During the late 90s and the 2000s, Nintendo didn't really censor M rated third party game and even had a few M rated games of their own.

If anything the only time when their censorship and dislike for mature themes was a problem it's during the Wii U era and that was mostly a Nintendo of America thing. I think you all remember the various outcry that happened during this period because Nintendo censored the fuck out of their own games in the west. They don't really do that anymore, probably becaus Nintendo of Japan told them to fuck off.