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We have posted earlier about developers now being able to submit Mature-rated games in Mango.
Of note is that it will not be up to Microsoft or the developer to rate a game, but that the rating will have to be from a recognized outside body like ESRB, and that rating needed will depend on the local market.
The side effect of this is that it is likely mature apps will be much more geographically limited, as developers will have to carry the cost of certification in each different market. On the other hand, without certification the apps would not be allowed at all which would be a lot worse.