Is Tokyo Mirage Sessions #FE Encore censored?

Censorship would imply that a government or some other regulating authority had told the creators to change the content of their game, and that's simply not the case. However, the creators indeed opted to change some aspects of the Wii U version on its release across different regions. It's a normal process game developers do all the time called localization. For the Encore edition on Switch, the changes were carried across all versions of the game.

There is quite a lot of visual content that has been changed, to the point where it would be difficult to catalog it all. However, all of the changes are either visual or involved very slight dialogue tweaks that do not affect the gameplay or the story in any meaningful way. Here are the main ones to be aware of:

• Everyone is a little bit older in the Encore version of the game. 16-year-olds are bumped up to 17, 18 to 19, and so forth.
• The third dungeon, which is focused on a photographer taking photos of models, revolves around sexy models in Japan. In the West, it concentrates instead somewhat on feeling comfortable in different outfits. The photos of the women and girls in the dungeon and some of the other contextual information around this dungeon have been changed to reflect this.
• As a result of the two above points, some dialogue has been re-recorded throughout the game reflecting the age changes and the different focus of the dungeon.
• Various visual changes have been made to outfits to make them less revealing. Some monsters or characters who were wearing little or no clothing (no clothing being because they are monsters) are now wearing outfits to obscure body parts that could be construed as human nudity. Some clothes have been lightly altered to reveal less, such as lengthening skirts or covering cleavage. Rather than underwear being seen under skirts during certain movement-heavy attacks, a void is present (showing nothing).
• A swimsuit DLC costume that was released for the original Tokyo Mirage Sessions in Japan has not been released for international versions of the game, or the Encore version.

All of this was originally changed during the Wii U release of Tokyo Mirage Sessions #FE, with the Japanese version getting the younger versions of characters, extra DLC, and original visual looks. With the release of Encore, every version, including Japan's, will be based on the Western localization.

It isn't clear exactly why the changes were made between the original Tokyo Mirage Sessions #FE in Japan and its international release. Nintendo and Atlas have not given official reasoning, though it is likely that they were concerned that the younger ages of the characters paired with content that could be considered sexually suggestive would not be well-received in outside markets.

That same reasoning likely applies to the Nintendo Switch version being based on the Western Wii U release. Though we do not have an official statement from either company regarding the reasons, they did apologize for not making it clear before launch which version the game would be based on and offered refunds on pre-orders:

If players still want to experience the original Japanese version, they still have access to the older release.