I think I read in a gaming magazine in the late 90s that in Germany games are censored so that blood spilling from enemies is coloured green or in some cases the enemies are robots that spill black oil.
True. Half Life 1 was awful in German. All the marines were robots. And when you shot a friendly human character they sat down on the ground shaking their head.
Same thing was done in Counter Strike when it went commercial, making it really hard to know whether someone is crouching or dead out of the game.
Patches to put the blood back into games were immensely popular. You'd often find them on the same sites you'd find cracks on.
And of course the effect all the censorship had was that having the latest and greatest most brutal game was more important than having a fun game. You were the king of the schoolyard if you could give the other kids Blood.
Third one definitely had blood and fatalities. With a Konami Code you could unlock one button fatalities. Good times. Unless you had increased the time to enter a fatality and did a stage fatality on a stage without one. Then you had to wait a looooong time for the opponent to fall over.