I can understand the outrage at this for Americans.
And while I'm not defending the practice at all... people have to understand that we are not a homogenized society. Each country has very different views on a multitude of subjects. In the same way this is totally abhorrent in many American's eyes, it's nothing particularly distasteful in the context of the Japanese market.
For instance, in American culture, Paris Hilton and Kim Kardashian had their careers jumpstarted by their sex tapes.
A few years ago, a prominent Hong Kong movie star had some personal sex tapes and photos leaked. I remember the sentiment of Americans who caught whiff of the new story making comments like "OH! Phfbt, it's just young people trying to advance their careers by probably self leaking this!"
Nah.
In Chinese culture, sex is overly taboo. Practically every celebrity involved in the leaks lost their careers. Edison Chen was at the top of his game and was immediately gone from the spotlight.
The point here is, before getting into an uproar about stuff like this... stop and think and try to understand why this happened in the first place. Sure, kudos to the stream for cutting out but at the same time, nobody in that audience in Japan was batting an eye since this is something that's still ingrained in their culture.
I mean, this was where E3 was for a looooong time. It wasn't until fairly recently booth babes were totally dropped.
Anyway, my two cents.