Fallout 3 didn't even got out in India. just because they had an mutilated cow like animal named 'Brahmin'.
Point is that it was done on Purpose,
intended to offend.
Just so you know, Fallout 1 had cows named brahmin and chicken named Brahma etc. I and a lot of others feel that there was racist intent behind it.
Bethseda could have changed it, but they didn't.
There is no reason why we can't make Hindi games, speaking from a technology point of view. I work in a Indian game development company and I can tell you that there is only one reason why we haven't already done so:
Not enough people buying games in India. If we had a bigger market such that we could survive by selling games ONLY to Indians, we will see an explosion in games made in Indian languages.
You will be surprised to know, I think, that there are many Indian companies developing high quality games these days. But since the companies are small and don't have the money (and the manpower) to make AAA games, you don't hear about them in the gaming press.
For example, check these guys out (casual games for the PC):
IronCode Gaming Pvt Ltd.