Punch-Out!! for Wii is a very strange game when it comes to this. On one hand, it leans very, very heavily on stereotypes. But on the other, I can't really remember anyone taking offense to it. It should be offensive, but somehow it managed to squeak by, and I'm really not sure how. Like it managed to somehow laugh with the stereotyped groups rather than at them.
It's an odd game. It really gets away with things that would get other games heavily criticized. Anyone got an idea why?
The reason why, and the reason why Punch Out is beloved the world over, is because it never does it in a way that demeans, but in a tongue in cheek, positive way. Also, the game is an equal opportunity offender. Meaning that it stereotypes everyone, even their own (Japan). It's a fine line, but people in general are funny. All of us. Stereotypes come from truth, but there are those that use it to demean and mock, and those that use it to celebrate all of our differences, which can be cool or funny or everything in between, and still be positive.
There are plenty of stereotypes of my culture that have truth to them, and they can be very hilarious when done in a playful manner. On the other end, one of my closest friends is of Swedish ancestry and really loves to eat, so we sass each other and I'll call him Swedish Chef and make the muppet sound. My best friend, she is German. When we are playful with each other, I'll tell her to shut up and go make me a strudel and pour me a lager or I'll ask her where she hides her lederhosen. In turn, she will ask me to go mow her lawn. Now, if this was one way, it would really be annoying, and if she was a stranger, goddamn offensive.. But it's not cause with our group, a varied bunch, it is a two way street. We have differences, and sometimes they are cool, sometimes they are hilarious and it's all on an equal level. We celebrate our differences.
The wife and I are the same. She's Italian American, and when she invited me to her house long ago for New Years, I asked her if I should wear a tracksuit with a Rocky hat to fit in. She will also play around with me like that cause Spanish family.... although I have learned Italian and Spanish families are almost the same thing being with her so long haha
Although funny story! I once joked around about the mafia just for the jokes with her, and I found out that her great grandparents actually had family connections and relatives in one of the crime families and that they had changed their last names to avoid association.