Target of Australia has responded to the news report saying:
We can assure you this plain packaging display is not policy nation-wide. We are currently investigating the origins of this image. There are some legal guidelines in SA around how R rated video games can be displayed, so we believe the image may have
originated from SA. Please don't hesitate to let us know if there's anything further we can assist you with.
Paranautical Activity is a 2014 first person shooter by Code Avarice developed further by Digerati in 2015
as the Deluxe Atonement Edition
The PC and consolde gamen Paranautical Activity made the news in 2014 when developer Mike Maulbeck got involved in a twitter storm over incorrect details and was pulled from Steam.
The game reappeared in February last year as a Deluxe Atonement Edition . But this has now been banned by Australian censors.
The Classification Board listing is dated 5th January 2016 and lists the film as banned or 'Refused Classification' The Australian censor does not give reasons for the ban beyond vague words about it not fitting within the censorship rules.
Current distributors Digerati told kotaku
they would look at removing the 'offending item' to comply with the Classification Board's requirements:
The reason they gave was 'illicit or proscribed drug use related to incentives and rewards' -- the prescribed drug in game is Adderall and picking up the item gives you a 15% speed increase.
I have asked if we can resub [Paranautical Activity] without the item, waiting for a reply.