Looks like Kain leveled up and needs a new cup to put his cock and balls in. This one is too small! I remember be very turned on by this. (Not to mention completely shocked!) I guess it's kinda tame by todays standards. I have heard people mention this from time to time on the net, but I haven't ever seen anyone make a big deal out of it. Still when I was 14, I would take any side dick I could get!
Nintendo Power is no stranger to controversial images. One I found recently, I don't know if anyone has seen before. The Astyanax preview in March of 1990 (the same issue the previewed Super Mario 3), has an image of the hero fighting Medusa. If you look just above the snakes head, you might just be able to make out the outline of a nipple! How this one got past the censors, I'll never know.
The hero Astyanax is pretty cute. Check out his original design for the arcade version called The Lord of King:
One thing about the early days of Nintendo Power, they certainly had some sweet art. Unfortunately, that didn't remain consistent when the magazine entered the 90s.