I like boobs and butts as much as the next hot-blooded heterosexual male. They're just about the most aesthetically pleasing configurations of fat and muscle you can find on a person, and I am far from being immune to their charms. But women are a lot more than boobs and butts. That may seem obvious, but the game industry and its fans are demonstrating their ignorance of that fact time and time again.
If you haven't been keeping up with the [Hitman] franchise, a recent trailer for the game got the internet up in arms, as it depicted sexy dominatrix nuns being violently dispatched by the protagonist Agent 47. Blystad is a nice, well-meaning man that simply doesn't understand why anyone is mad about the trailer for his game. This is actually a very large part of the problem.
if you were going to assassinate someone, would you wear the tightest thing possible? Would you expose your breasts to the world, essentially creating a target for a bullet? Probably not.
But I'm not stupid -- I know why we put ladies in these ridiculous costumes, and I know why Blystad doesn't get what the problem is. It's because we, the people making the decisions on these games, are largely men, largely heterosexual, and as such we like looking at boobs and butts, and we are making this game for others who feel the same way, which is inherently limiting. This is the very definition of the Male Gaze theory, which is at the heart of much of the discussion we're having about women in and around games these days.