The Gegenheimer History

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August 16, 2005
 
Battle over video games rages on
The Federal Trade Commission is seeking to regulate the sale of video games to minors.

The Dallas Morning News
 
The controversy over hidden sex scenes in "Grand Theft Auto: San Andreas" may have subsided for the moment, but that doesn't mean it's over.

The next round will probably take place in Washington as the Federal Trade Commission is investigating publisher Take-Two Interactive Software Inc. for possible deceptive advertising, and Sen. Hillary Clinton, D-N.Y., is pushing for a law that would create financial penalties for retailers that sell games to underage children.

"She still is moving forward with legislation," said Sarah Gegenheimer, a spokeswoman for Clinton. "What she's saying is we need to help parents by making sure the ratings have teeth."

The game industry has successfully fended off all previous regulation attempts by states, arguing that the laws are an unconstitutional infringement on free speech.

And the industry is trying to persuade politicians that new laws aren't needed.

Retailers would be fined

But some observers say that even if laws were passed that fine retailers for selling violent and sexually explicit games to kids, the effect on the industry would be negligible.

"I would rather not have it," said Dan DeMatteo, chief operating officer at Grapevine, Texas-based GameStop Corp., the largest games-only retailer in the United States.

"But if somebody sells beer to someone under 21, they can get fined," he said. "This is not a lot different."

GameStop does not sell Mature-rated games -- those intended for gamers 17 and older -- to anyone younger than 17, DeMatteo said.

Arvind Bhatia, an analyst with Dallas-based Southwest Securities, said most retailers have similar policies, which should minimize the effect on sales if legal penalties are instituted.

"The rules are in place," he said. "The systems are in place. So federal oversight I don't think will change any of that."

In Illinois, Gov. Rod Blagojevich recently signed into state law a bill that will fine retailers for selling games with "violent and sexually explicit" content to gamers younger than 18.

The law goes into effect in January.

The Entertainment Software Association, the main trade group for the games industry, is suing to overturn the Illinois law and hopes to convince federal legislators that national oversight is unnecessary.

Association president Doug Lowenstein said the group that assigns age ratings to games, and to which game makers voluntarily submit their products for rating, did its job with "San Andreas."

When the hidden, unlockable content was found within the game's original code, the group changed the age rating on "San Andreas" from Mature to Adults Only.

While the age difference between those two ratings is small -- 17 and older for Mature games, vs. 18 and older for Adults Only titles -- most major retailers refuse to stock Adults Only games.

GameStop, Best Buy Co. and Wal-Mart Stores Inc. were among the retailers that yanked "San Andreas" off their shelves once the new rating was assigned in July.

"I feel a little bit frustrated that some people sort of regard this as a failure of self-regulation, and I regard this as a real triumph of self-regulation," Lowenstein said.

Replacing the Entertainment Software Rating Board with a federal review board would be both unconstitutional and inefficient, he said.

"I in fact do hope and believe that as in instances where these kinds of proposals are enacted . . . eventually people realize that this is a politically attractive line of attack in the short term, but in the end, it doesn't get you very far," he said.

DeMatteo said that one reason new laws may not do much good is that kids often buy Mature-rated games with the consent of their parents.

Explicit games a minority

But a 2003 report from the Federal Trade Commission found that most young gamers could purchase "Mature"-rated games without any help from a parent.

According to the report, underage gamers were able to buy Mature-rated games 69 percent of the time they tried. The Entertainment Software Association emphasizes that Mature-rated games -- despite all the headlines they receive -- remain a small part of the industry's total sales.

In 2004, video and computer game software sales totaled $7.3 billion, with 16 percent of the games sold rated Mature.

And the game audience is getting older.

According to the association, only 35 percent of video and computer game players are younger than 18.

 

 
 

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Last Update: 07/20/97

Copyright; 1998 
by TL Consulting Group - 
ALL RIGHTS RESERVED


Copyright; 1998 by TL Consulting Group - ALL RIGHTS RESERVED