Officers took manager Shiro Kuwahara, 56, and four other suspects into custody and seized a total of 190,000 uncensored discs.
By law, films available in Japan are required to have genitalia properly censored.
The shop operated by Kuwahara, which contained 35,000 discs, and one other are located within 200 meters of the Naniwa Police Station.
According to police, many illegal shops in the Nipponbashi area are established after crackdowns take place. Law enforcement intends to monitor the situation carefully.
