Sounds like a public relations nightmare in the making. It's hard to believe that anyone smart enough to design video games could be that dumb.
From the UGO story:
Fairytale Fights may be the first game that not only features the innocent murder of children, but also an achievement to reward it.
After speaking with Playlogic last week, it sounds like the achievement's on the chopping block waiting for the axe to fall, but the children and the you killing them parts, those will definitely be served in the final dish...
Playlogic producer Poria Torkan told UGO that the company does have some concerns about the achievement. The game is scheduled to release on PS3 and Xbox 360. We wonder if Sony and MS will have concerns about licensing it with the dead kids achievement.