need to understand it’s a private company and they can do whatever they want,

That’s the crux of it.

It’s their platform and they can make the rules for what they want (and don’t want) on their platform.

If they want it to be a porn-free gaming platform, that’s their right.

If they say “you want porn, go to a porn platform”, that’s their right.

The reasons for those decisions could be many things, and probably are a combination of things. It doesn’t have to be “they’re just a bunch of nanny state prudes”…