Video games are reflections of the world, even with all the fancy visual effects and movements, therefore characters within video games are creations that are based on the existing world, even those with extraordinary body and skills. Since sexism could appear in every corner of this world across culture and language, it is not surprise that offensive video games about gender, or female in particular, exists. However. one game may considered extremely sexism and offensive in one culture, but not as much in another. Japan and Japanese culture for example, would have different view of sexism among video games.
There are games like Dead or Alive (Team Ninja, from 1996) , famous for the very “simple” dressed characters and wobbly breasts, cute face but deadly fighting skill. The target market of this game cannot be more straightforward: Otaku. Otaku is a term that similar to the Nerd, common in Japan but not necessary link to loser, usually love “little or big sister” and obsessed with cuteness. The game is offensive to female, over the world I think, but considering about modern Japanese culture and its’ social environment, it become more reasonable in Japan. Therefore it is not the game maker who should be blamed.
Adult entertainment has a long history in Japan and always considered respectful, always protected by law, those sex supplier women were even considered sacred, holy and memorable because they had served for the whole country during the WWII period. Adult video, or porn in Japan, has become an expensive films industry, female actors who become stars were considered as respectful as conventional TV stars, even seen as harder worker, they are commonly seen on TV, in advertising or events. Some even invited to TV shows for young people as a kind, caring older sister.
Influenced by Manga, or maybe influencing Manga, cute is a label for Japanese girls. Yes it is a stereotype, but it is commonly welcomed among Japanese people. Cute when there is a male around, independent when she is along. This was considered the goal of most japanese girls. With such cultural background, it is not a surprise that game like Dead of Alive comes out. Cute as a little sister but strong and protecting as a big sister, even big brother like. Sexy as the whole country has been expecting for centuries. Those Manga like characters, are considered way less sexism among Japanese female than Western female.