A Nintendo game withdrawn from sale in Europe due to child pornography concerns but given a PG rating in Australia has had its classification revoked.

Dead Or Alive: Dimensions caused a stir in Sweden, Norway and Denmark after it was found players could look up the skirts of its big-breasted, scantily clad characters who were apparently under 18.

Nintendo in Europe then decided not to distribute the latest edition in the long-running Manga cartoon-style combat series.

But Nintendo Australia spokeswoman Heather Murphy told ABC News Online last week the characters in question were listed as N/A (no age) for their age in the Australian version.

"It doesn't state the ages of all the players, and the ones who do have an age in their profile are not under 18," she said.

"They're not listed as underage. They're listed as no age.

"Nintendo didn't rate this game. Tecmo Koei didn't rate the game. The classification branch did.

"They're a government body and look at the content and have given it a PG rating."

In February, the game was given its PG rating with advice that it featured "mild violence and sexualised gameplay".

But media attention caught the eye of Home Affairs Minister Brendan O'Connor, who demanded answers from the Classification Board.

The board then issued Nintendo with a show cause notice giving the company one week to prove why the game should not have its classification revoked.

But on Friday it did just that - a move welcomed by Mr O'Connor.

"The material in this game is clearly not appropriate to be played by children," he said in a statement.

"I am pleased the Classification Board took swift action to address community concerns."

It means Dead Or Alive: Dimensions will not be available in Australia again unless it is reclassified.

Last month Mr O'Connor's department released draft guidelines on the introduction of an R18+ rating for video games ahead of a meeting next month to decide whether to push ahead with the new laws.

Games that do not qualify for the current MA15+ rating are not sold in Australia, but the higher classification would drastically loosen restrictions on drug use, nudity and language.

All states and territories need to agree on the classification for it to go ahead.