PETA is not even trying to be taken seriously anymore. It's bad enough you'd swear they were a front for an opposing group designed to mock real groups who care about animals.
The author said the tanooki suit is disturbing if you think about it, but you'd have to have a pretty sick mind for your mental train to even end up there in the first place.
Seriously, they saw the digital pudgy animal costume vaguely referencing tanooki features and;
1) assume the digital costume represents the fur of a (digital?) tanooki
2) assume the digital hero is supporting the real world tanooki fur market on the sly
3) devote however much time and energy to develop a propoganda game that reinforces gory twisted imagery that didn't exist IN TIME for the real game's release, WHICH even for a small game, pretty much had to been in the works the moment the tanooki suit was first rumored.
Right now, Defenders of Wildlife are struggling against lawmakers and their supporters who want to shoot wolves on sight in Wyoming. Greenpeace is working to tear down Japan's abuse of the hunting whales "for science" loophole. PETA made a game perverting the imagery of Mario wearing a pudgy animal costume.