Oblivion naked skin controversy
The follow was a news item relating to controversy surrounding the discovery of 'naked' character skins in Oblivion. The ESRB recommended that these 'omissions' be fixed, presumably by painting out the offending 'breast' area of female characters as shown below.
Default character skin showing breast detail, the source of the ESRB's comments
The default image used by the game. This is shipped as part of Oblivion's assets and clearly shows 'details' not normally viewed by gamers without hacking the game.
Fixed version of the default naked skin with breast details painted out, a-la the ESRB's recommendations
A quick edit showing what the ESRB probably expected to see for their 'Teen' rating; none specific gender detail. The problem is however, that even doing this doesn't stop modders from creating and using their own assets. This can be said of any game that has humanoid characters being used regardless as to whether the model allows it.