The games showing characters as sex dolls is mostly over the top games like DOA, which you shouldn't be buying anyway if you don't like that kind of stuff. You know whats more harmful that is people becoming more accepting of the over-weghit movement, and ignoring diabetes, heart attack, and other problems. There are games however that are noting like DOA, or over the top sexual games. You should just get those games.
I love Soul Calibur. I can love the series and still think that some of the character design are problematic and criticize them whenever I can.
But only talking about sexualized character designs doesn't do the issue justice. There is much more to dissect here. Its not just they way women in games look, but also the way they behave, the roles they take on, the way they are treated etc.
Sexualized designs are the most prominent and easily discernible issue, but far from the only issue.
And obviously its not only women either. There are also a lot of problems with they way men are displayed in games and media in general.
One of the main reasons why men have a harder time talking about feelings, are more likely to commit crime and why men have higher suicide rates is the way ideal male behavior is portrayed in media.
This shapes how men act and are expected to act in a major way.
This doesn't mean that we can't have hero's anymore, it simply means that it would be good if more developers would spend the time to humanize their characters.
You can still have your Kratos, who's afraid of no monster, no matter how big. But you'll see him scared shitless when his boy falls ill. You'll see him struggle with the fact that his strength and power are useless when it comes to some of the emotional "tasks", like connecting with his boy.
Or take Joel in TLoU. He could've easily been a typical dudebro hero-in-the-apocalypse type guy, but instead they made him a broken, deeply flawed wreck of man on a road to a redemption he doesn't even want. A man who, after surviving the apocalypse for more than 20 years, is scared out of his mind once he realizes that he is starting to connect to Ellie emotionally. A man who is flawed, a man who lies, a man who is selfish and fearful.
All of these things make Joel real and relatable.
These kinds of characters are the next step. These are the results of the criticisms people have been voicing for years now.
And obviously not every game is a good fit for characters like that, but even in less story focussed games there is still much room for improvement when it comes to design, behavior, motivation etc. of characters.