
Now, there is a fine line between having profanity to deepen the understanding of the character’s emotions and having profanity just for the sake of having it. What developers have to understand is that you have to write profanity into the dialogue well. You cannot just coat the character with profanity wherever you want and expect the player to fall for your lack of writing skills; it makes the character transparent and shallow.

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Depends on the genre and setting of the game.
Absolutely not. Yes there is profanity in real life, but too many developers are using it as a crutch. Sometimes, the profanity itself becomes so ridiculous that all realism is lost.
it does seem to have hit the realms of silly, and I would argue that most games wouldn´t suffer if there was a bit less.
I don't think profanity equals realism... a game can feel realistic without it. But a few swear words can add to realism. There were a few in Alan Wake, for example, and they all seemed appropriate given the situation. I know if I were being chased by possessed townsfolk I'd swear like a sailor! ;)
There are some games that take it to an unnecesary level but I agree that given the right situation, or setting, definitely makes it more realistic