Micro-marines in condom helmets tromping through a landscape of pubic hair will not be part of your Xbox 360 experience, according to a Microsoft statement on Privates, a title being developed for the PC and Xbox Live Arcade.
spokesman gave this rather definite comment to the Seattle Post-Intelligencer.
This game has not been submitted to our pre-publication peer review process, and it has not been approved for distribution on Xbox Live Indie Games. We have guidelines in place that closely track requirements of content ratings boards worldwide and, among other things, prohibit the publication of strong sexual content.
While we haven't seen this game, we can confirm that if it is consistent with the description we have seen on the Internet, this game would not pass peer review and would not be permitted to be distributed on Xbox Live.