A classic "everyday life simulator" (like The Sims) that focuses purely on normal life in Latin America and looks photorealistic hardly exists in that form. The realistic depiction of culture, lifestyle, and architecture is mostly embedded in other genres (like open-world action, racing games, or profound indie titles).
Here are the games on Steam that capture Latin American culture, landscapes, or urban life most realistically:
1. Urban Life & Everyday City Life

• 171 (Early Access)
  • Setting: Fictional city in the state of São Paulo, Brazil.
    
  • Realism Factor: Very high (Environment). The game is often referred to as "Brazilian GTA". Even though it's a crime game, the developers' attention to detail is impressive. The architecture of the houses, the cars, the music, the vegetation, and the general "street feel" of a Brazilian suburb are captured extremely realistically.
    
• Max Payne 3
  • Setting: São Paulo, Brazil.
    
  • Realism Factor: High (Setting), but Hollywood action. Rockstar Games did an enormous amount of research in São Paulo back then. The depiction of the favelas, the wealth gap, the nightclubs, and the police tactics is visually and atmospherically very authentic, even if the gameplay is an exaggerated action shooter.
    

2. Landscape, Culture & Atmosphere

• Forza Horizon 5
  • Setting: Mexico.
    
  • Realism Factor: Very high (Environment & Culture). Although it's a racing game, it's one of the most respectful and realistic love letters to Mexico in gaming. The development team worked with local artists. You see authentic street art (murals), historical ruins, colonial cities like Guanajuato, celebrate the local car culture (the VW Beetle "Vocho"), and listen to Mexican radio.
    
• Tom Clancy's Ghost Recon Wildlands
  • Setting: Bolivia.
    
  • Realism Factor: High (Geography & Village Life). Ubisoft created a gigantic, breathtaking replica of the Bolivian landscape (salt flats, jungles, Andes). If you ignore the missions and just observe the NPCs, you see a very detailed depiction of rural life, the markets, and the indigenous influences. Note: The Bolivian government protested against the game because it primarily portrays the country as a narco-state.
    

3. Indigenous Culture & History

• Mulaka
  • Setting: Northern Mexico (Sierra Tarahumara).
    
  • Realism Factor: Culturally very authentic, graphically stylized. An action-adventure developed by the Mexican studio Lienzo. It is based entirely on the real culture, myths, and lifestyle of the indigenous Tarahumara (Rarámuri). It's a great way to get to know the pre-Hispanic way of life.
    
• Roots of Pacha
  • Setting: Stone Age (Heavily inspired by South American cultures).
    
  • Realism Factor: Mechanically a cozy game (like Stardew Valley), but culturally interesting. Instead of European medieval fantasy, you build a village here whose architecture, plants (quinoa, corn), and spiritual festivals are strongly inspired by early Andean civilizations.
    

4. Emotional & Social Realism

• Papo & Yo
  • Setting: A South American favela.
    
  • Realism Factor: Magical realism. The game uses fantasy elements (a monster that eats frogs) to tell a very real, harsh story: growing up in a favela with an alcoholic, abusive father. The architecture of the corrugated iron shacks, the graffiti, and the feeling of the neighborhood are deeply rooted in the developer's real Latin American experience.
    

5. Music, Folklore & Adventure (Adventures)

• El Tango de la Muerte
  • Setting: Argentina (Buenos Aires), 1923.
    
  • Realism Factor: Historically and musically very authentic. A rhythm-based puzzle game that celebrates the Argentine tango culture of the 1920s. With real pieces by the YIRA Orchestra, it captures the atmosphere and history of the tango wonderfully, even if the pixel visuals are abstract.
    
• Shadow of the Tomb Raider
  • Setting: Peru and Mexico (Cozumel).
    
  • Realism Factor: Extremely high environmental fidelity, Hollywood story. As an action-adventure, it focuses on treasure hunting, but the developers worked closely with historians to visually depict the Mesoamerican and Inca cultures. Tip: There is an "Immersion" option in the menu where NPCs in the villages speak their real indigenous languages (like Yucatec Maya).
    
• Grim Fandango Remastered
  • Setting: The Land of the Dead (Mesoamerican Mythology).
    
  • Realism Factor: Culturally deeply rooted, but pure fantasy. An adventure classic by LucasArts that mixes Mexican folklore around the "Día de los Muertos" (Day of the Dead) with Art Deco and Film Noir. It's a playable fairy tale about Mexican death culture.
    

6. Upcoming Games (Upcoming Highlights)

• Mictlan: An Ancient Mythical Tale (Planned release still pending)
  • Setting: Mexico in the 16th century (Time of the Spanish conquest).
    
  • Realism Factor: Extremely ambitious. This action-adventure is highly anticipated by many culture fans. It strives for unprecedented historical accuracy. The developers work closely with historians and indigenous communities. The game will be completely voiced in Nahuatl and Maya (the actual languages of the time) and sheds light on Mesoamerican mythology and society.
    
• The Many Sins of House Ocampo (Planned release still pending)
  • Setting: Argentina (Buenos Aires), 1977.
    
  • Realism Factor: Historically highly thrilling. A deductive point-and-click mystery adventure in a beautiful pixel art style. You slip into the role of a young woman who uncovers the dark secrets and the alleged curse of her ancestors during the Argentine military dictatorship.
    
• Echoes Of The City (Planned release still pending)
  • Setting: Argentina (Buenos Aires, San Telmo neighborhood).
    
  • Realism Factor: Realistic trauma and history. A narrative first-person adventure with psychological horror. You return to an abandoned house and discover a family history inextricably linked to the dark times of the Argentine dictatorship.
    
• Flora and the Ceibo Seeds (Soon in Early Access)
  • Setting: Argentina, Mythical World.
    
  • Realism Factor: Magical-indigenous. A 3D adventure about an 8-year-old girl who solves environmental problems and explores the world of legends based on traditions and legends of the indigenous peoples of Argentina.
    
• Gaucho and the Grassland (New on the market/Early Access)
  • Setting: Pampa region (Southern Brazil/Argentina/Uruguay).
    
  • Realism Factor: Culturally very realistic, visually a sweet cozy game. It celebrates the real folklore of the South American cowboys (Gauchos). You drink mate tea, breed animals in a traditional Gaucho environment, and meet mythical creatures from South American mythology.
    

Summary
If you want to see street culture and modern city life, check out 171. If you want to experience beauty, music, and joy of life, Forza Horizon 5 is the best choice. If you are into adventures and real history, definitely put Mictlan: An Ancient Mythical Tale and the upcoming Argentine crime adventures The Many Sins of House Ocampo and Echoes Of The City on your Steam wishlist.

---

Strategy & Historical Epic (Macro-History)

Age of Empires II: Definitive Edition

Setting: Middle Ages / Pre-Columbian Era.

Realism Factor: Historically very valuable campaigns. You can play the civilizations of the Aztecs, Mayas, and Incas with authentic architectural styles. Great narrative campaigns like those of Montezuma or Pachacuti shed light on the history before and during the arrival of the Spanish.

Age of Empires III: Definitive Edition

Setting: The era of the colonization of the Americas.

Realism Factor: Focus on conflict and trade. Highlights the Spanish and Portuguese colonial powers, but also lets you control indigenous peoples (Aztecs, Incas) with historically inspired, entirely unique game mechanics.

Europa Universalis IV

Setting: World map from 1444 to 1821.

Realism Factor: Extreme historical macro-realism. You can start as a small Inca or Maya nation. The game simulates real historical events, religions (like the sun cult), and the ruthless real colonial system of the Europeans in extreme depth.

Sid Meier’s Civilization VI

Setting: Civilization building (Stone Age to Future).

Realism Factor: Fictional game board, but enormous real background knowledge. You can play leaders like Pachacuti (Inca), Montezuma (Aztec), or Simón Bolívar (Gran Colombia). The in-game encyclopedia ("Civilopedia") offers fantastic historical knowledge about these peoples.