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So you're saying woman are in video games only to be ogled. Not to be characters in their own right or to be realistic because a setting isn't entirely made of women. But the only purpose for women, in your mind, is fanservice, in video games. That's what I'm reading from your tone and words. If you disagree, please say so.
Laura Croft is by no means a 'toned down sexual appearance'? What the hell do you think of as 'toned down'? That she isn't actually shown having sex? Jeezus. I mean, regardless of how the game was advertised, which is it's own problem, there's the issue of the origin of Laura Croft, the reason for her tremendous cup size, and worse, the reason they kept it.
Being gruesomely injured has nothing to do with being objectified. I literally said that last post, or close enough to make no difference. That's not why she's objectified. Being able to die is simply a fact. That doesn't have anything to do with objectification. In NPCs, it's the surrounding context for it that makes it objectification. If there's no consequence for murder? If you can get away with it all the time, and there's even incentive to do so? That's objectification. It makes them into toys, rewards, containers to be opened(with your sword!).
To your last paragraph: Meh. I prefer realism, at least to a degree, and while the power fantasies and escapism are nice too, I feel like if a character has to actually try, it's more interesting. Maybe that's just me, though.