Take-Two Interactive announced yesterday that it has reached a $20 million settlement in a class-action lawsuit filed over the 2005 Hot Coffee scandal.

Although T2's press release is regrettably light on details, securities are mentioned, indicating that  this case is related to loss of equity value caused by Hot Coffee and its fallout.

Venture Beat has dug up a link to the complaint, Feninger vs. Take-Two. Kotaku offers an explanation of the details:

The nut of the allegations contained in the 34-page suit, is that Take-Two was spending more than it was bringing in and couldn't survive until the next Grand Theft Auto. So, the suit alleges, the company pushed Grand Theft Auto: San Andreas out the door knowing that there was pornographic material in the game because delays would have cost the company too much. If the material was known to be in the, the suit continues, major retailers wouldn't have sold it.

The outcome, according to the suit, was inflated stock prices based on bad or uninformed information from the company and a plunge in stock values when the truth came out.

The suit also alleges that Take-Two lied about the included sex scenes, nicknamed Hot Coffee, when they first came to light, with the company the scenes were "the work of a determined group of hackers who have gone to significant trouble to alter scenes.'"

GP: We should point out that, as the record shows, the notion that Take-Two lied about the origin of the Hot Coffee scenes is a fact, not merely an allegation. In one the sleaziest moves ever seen in the game biz, Take-Two tried to pin the rap for the hidden sex scenes on its biggest fans, the GTA mod community. To be fair, there was a different management team in place back then.

The Federal Communications Commission will evaluate the potential for a single content rating system that would span various forms of media, including video games, movies, TV and music.

Bloomberg reports that the FCC will study the issue at the direction of Congress:

The FCC action follows congressional queries into whether children are harmed by inappropriate content, such as sex, violence and obscenity. Senators want to know whether revisions are needed to the law to protect children, said Senator Jay Rockefeller...

FCC Chairman Julius Genachowski told Congress in July he was “hopeful that the evolving media landscape” will enhance parents’ power “to pick and choose” what their child sees and hears.

Not surprisingly, game publishers lobbying group ESA is opposed to the idea. Kotaku has comment from ESA VP RichTaylor:

The ESA appreciates the FCC and its important role. However, the ESRB rating system is considered by parents, family advocates, the Federal Trade Commission, and elected officials as the gold standard in providing caregivers with the information they need to make the right choices for their families. Universal ratings will, in the end, only serve to confuse consumers, violate the Constitution's first amendment, and are a solution in search of a problem.

The debate over graphic Japanese sex games such as the disgusting and controversial RapeLay continues with word that the United Nations is stepping in.

At a meeting earlier this month, the U.N.'s Committee on the Elimination of Discrimination against Women called for a ban on explicit video games and anime. As reported by Anime News Network, the committee urged Japan to ban "the sale of video games or cartoons involving rape and sexual violence against women which normalize and promote sexual violence against women and girls."

The committee also expressed concern "at the normalization of sexual violence in the State party as reflected by the prevalence of pornographic video games and cartoons featuring rape, gang rape, stalking and the sexual molestation of woman and girls."

Via: Kotaku

A tell-all book in which the estranged wife of Italian Premier Silvio Berlusconi reveals her frustrations with his extra-marital dalliances serves as the basis for a new online game from T-enterprise.

In the game, the Berlusconi character must throw copies of his wife Veronica Lario's book into a furnace while dodging boulders.

British publisher Imagine routinely includes ads for pornography and sex chat services in the back of their video game magazines, according to a report at Overclock3D.

There, a UK man writing under the name "mayhem" describes sending his 8-year-old daughter out on a secret shopper mission to see whether she could purchase video game magazines containing such ads:

My 8 year old daughter walked in... On the lower shelf she picked out several magazines including Play (a Sony PlayStation 3 Magazine) and 360 (a Microsoft Xbox 360 magazine) both of which are published by Imagine Publishing. Neither of these titles had an 18 or 15 certificate on them. She also picked up several Future Publishing magazines and Dennis Publishing magazines.
 
She then proceeded to the check out were a young girl of about 19 years old had a quick look at the magazines and then scanned them in. My daughter then handed over the money and then walked out after saying thank you, and handed the magazines to me.
 
After a quick look through all the magazine I found that only Imagine Publishing had any sort of pornography contained within them...
 
So over all its been a interesting day finding out that such a major publisher (Imagine Publishing) has no morals when it comes to making money, even if it means serving up pornographic content to children that may read their magazines...
 

Via: fidgit

Are the virtual worlds portrayed in massively-multiplayer online games inherently sexist?

Although she believes the situation is improving, Jaime, a veteran female gamer, still sees a great deal of sexism in MMOs. In a column for MMOsite she explains her view:

From my own experience, in the early days of MMOs – looking back at Ultima Online and EverQuest – there was a definite attitude that women simply didn't play games... Female players who identified their gender... [were] ignored. Women... [had] their skills and abilities in the game questioned...

Players began to slowly accept that there were women playing MMOs... Nonetheless, the attitude itself was still low and chauvinistic. I can recount at least half a dozen times while playing Dark Age of Camelot... [receiving] requests for pictures, breast size, age, if I was available for dating, and various sexual requests and connotations...

There's also been one constant: the harassing of female characters... whispers soliciting cybersex, of course, but also more innocent gestures such as the use of emotes to flirt at, kiss, poke, tickle, tease, grope, slap, and otherwise virtually sexually harass a female character.

Not surprisingly, Jaime sees the anonymous nature of the online world as a major contributing factor in MMO sexism.

Electronic Art has apparently backed off a Comic Con promotion which encouraged attendees to "Commit an act of lust" with booth babes hired for the event.

Negative Gamer reports on EA's mea culpa:

Costumed reps are a tradition at Comic-Con. In the spirit of both the Circle of Lust and Comic-Con, we are encouraging attendees to Tweet photos of themselves with any of the costumed reps[...]

We apologize for any confusion and offense that resulted from our choice of wording, and want to assure you that we take your concerns and sentiments seriously.

It's all by way of promoting the publisher's upcoming Dante's Inferno. GamePolitics readers will recall an earlier controversy around the game when EA hired fake Christian protesters to march outside the Los Angeles Convention Center during E3.

Over at GameTopius, paralegal-in-training Nikhil Baliga (who also has degrees in Political Science and Psychology) serves up a look at First Amendment issues as they relate to games.

While Baliga does a nice job of tracing some of the major case law, the article's main points could be stated with more clarity. This paragraph, for example, seems to imply that video games are not necessarily constitutionally-protected speech (they are):

What well intentioned, but usually ill informed, video game advocates often assume is that video games are constitutionally protected free speech. While there can be no doubt that video games are speech, the Supreme Court has stated that not all speech is constitutionally protected.

Later, Baliga explains that this is a reference to video games which might be considered legally obscene under the so-called Miller Test. The fact is, however, that the likelihood of that happening in the U.S. market, given the ESRB rating system, console licensing requirements and screening by major retailers, is roughly nil.

While there could be a non-commercial game or import (say, RapeLay) that might - might - meet the Miller obscenity standard, implying that commercial video games are not protected speech is roughly akin to saying that Hollywood movies aren't necessarily protected speech because there are also kiddie porn films.

Still in all, worth a read.

GP: Readers should note that Baliga is not a lawyer and neither is GP. So, take both opinions with the appropriate grain of salt.

Despite taking a bit of a thrashing in the mainstream media, BioWare remains unfazed by the 2008 controversy that Fox News ginned up over the well-known and tenderly played sex scene in best-selling RPG Mass Effect. The noted game developer's upcoming title Dragon Age: Origins is set to feature more of the same.
 
In an interview with CVG, co-founder of BioWare, Greg Zeschuk discusses the inclusion of sexual interactions in video games:

I don't think [games] need to have [sex scenes], I think that in certain types of games it makes sense to have them... That said, I think from our perspective we want to reflect real human relationships... And if that involves some sort of intimate scenes, we want to provide those for the player.
 
It's based on the fact that this is a sophisticated mature experience. The same way that a kid's anime or cartoon will have a different style of content in it than a really serious drama, this is like a serious drama. Really what we're going for in all cases is emotional engagement, some kind of impact.

-Reporting from San Diego, GamePolitics Correspondent Andrew Eisen thinks Microsoft’s Project Natal could make for some interesting sexual interactions in video games...

I just completed an interview on CBC's Q program. Also appearing was Mike Thomsen of IGN.

The show was styled as a debate on sexual violence in games, with a lot of attention paid to RapeLay. I've never held back my contempt for the game and didn't on today's program.

I believe that they archive the previous day's show into a podcast. If you're interested in listening, check out the Q show website.

UPDATE: If you missed the program, CBC has posted the podcast version.

Louisiana Senate Bill 152 began life as a clone of Jack Thompson's failed Utah legislation and died quietly this week in the Commerce Committee of the Louisiana House, according to The Old River Road, a blog which tracks Louisiana politics. Although we haven't yet seen a post about SB 152 at TORR, blogger Charlie Buras dropped us a line via Twitter last night to say the bill expired in committee.

Between birth and death SB 152 was completely reworked by its sponsor, Sen. A.G. Crowe (R). As for Thompson, he was nowhere to be seen in the process. The truth in advertising legal theory advocated by the disbarred Miami attorney quietly morphed into proposed civil sanctions against those who would distribute sexually explicit material to minors. The need for such legislation is not entirely clear, since such conduct is already an offense under Louisiana criminal law.

Although Crowe's Senate colleagues passed the bill overwhelmingly, House members seemed less impressed. At a hearing earlier this week the bill was diverted to the Commerce Committee.

UPDATE: The Times-Picayune has more details, including word that the Commerce Committee voted 12-2 to kill the bill. The estimated $1.6 million cost to administer the bill didn't help any. (GP: thanks to longtime reader BearDogg-X for the link!).

Much has been written about RapeLay since the controversial Hentai game was discovered for sale on Amazon a few months back.

But while the debate thus far has largely centered around whether Japan, where RapeLay and most similar titles originate, should allow games featuring sexual violence to be published, a recent court ruling suggests that U.S. citizens who possess RapeLay and games of its ilk may be guilty of a federal offense.

Wired's Threat Level blog reports that on Monday the 4th U.S. Circuit Court of Appeals refused to consider the appeal of Dwight Whorley, a Virginia man who was convicted in U.S. District Court of possessing actual kiddie porn. But, under what is known as the 2003 Protect Act, prosecutors also charged Whorley with possessing manga which depicted minors having explicit sex. From the relevant section of the Protect Act:

Any person who... knowingly possesses a visual depiction of any kind, including a drawing, cartoon, sculpture, or painting, that—

 

(1) (A) depicts a minor engaging in sexually explicit conduct; and

(B) is obscene; or

(2) (A) depicts an image that is, or appears to be, of a minor engaging in graphic bestiality, sadistic or masochistic abuse, or sexual intercourse, including genital-genital, oral-genital, anal-genital, or oral-anal, whether between persons of the same or opposite sex; and

(B) lacks serious literary, artistic, political, or scientific value... shall be subject to the penalties provided...

(c) Nonrequired Element of Offense.— It is not a required element of any offense under this section that the minor depicted actually exist.

Threat Level also cites a similar conviction against Christopher Handley, a comic book collector who imported sexually explicit manga containing illustrations of child sex abuse and bestiality. Unlike Whorley, Handley possessed no actual child pornography.

So how does this connect to the RapeLay situation? A [NSFW] review of the game posted on Something Awful describes graphic, forced sex with a mother and her two minor daughters, the youngest of whom appears to be about ten years old. Save for the fact that it's interactive, RapeLay is not much different from the type of hardcore manga which earned federal time for Whorley and Handley.

We should note that a single judge on the 4th Circuit dissented from the opinion upholding Whorley's conviction and urged that the case be sent to the U.S. Supreme Court. But for now, at least, owning a copy of RapeLay seems like a risky legal proposition, indeed.

Rev. James Dobson, the politically influential, conservative evangelical leader of nonprofit group Focus on the Family, has given a green light to some video games while offering warnings about violent an sexual content as well as possible game addiction in regard to others.

Dobson's comments appeared in his newspaper column in response to a question from a parent about their son's video gaming:

Depending on the particular games in question, you may have a valid cause for concern... two University of Michigan researchers concluded in 2007 that violent media, including television, film and video games, pose a significant public health threat...

Furthermore, some video games add unhealthy sexual themes and profanity to the mix, not to mention that the American Medical Association estimates one in 10 video gamers is addicted.

Of course, not all video games are problematic. Certain sports games, for instance, can be loads of fun. Some can even be educational...

I’d advise you to put clear limits on the amount of time your son will be allowed to spend with video games... Insist he avoid the troublesome ones altogether...

GP: Dobson is referring to the 2007 Huesmann-Bushman study.

By a 35-0 vote yesteday, the Louisiana Senate passed SB 152, a bill which would make a pattern of distributing sexually explicit material to children a deceptive trade practice under state law.

GamePolitics readers may recall that in its original form, SB 152 was drafted by disbarred Miami attorney Jack Thompson as a back-door means of enforcing ESRB content ratings. The original SB 152 mirrored Thompson's Utah bill, which was vetoed by Utah Gov. Jon Huntsman (R) in March. However, bill sponsor Sen. A.G. Crowe (R, at left) subsequently gutted Thompson's focus on age ratings from the bill, amending it instead to its new focus on the distribution of sexually explicit material to minors. It should be noted that distributing such material to minors is already an offense under Louisiana's criminal statutes.

Unlike the Utah bill, SB 152 doesn't make reference to video games, advertising, age ratings or any specific product, for that matter. However, Sen. Crowe did mention video games as an example during yesterday's session:

This body has over the years passed numerous laws to protect our children... And with the growth of...  the market of materials that would be considered by most of us here objectionable as it relates to obscenity such as that is found... in video games either rented or purchased, could fall again into the hands of some of our children. So it is a step in the direction of moving, passing legislation that would allow for, again, protecting our children from this type of thing...

Oddly enough, SB 152 specifically excludes the Internet from its provisions. These days the online world would seem the most likely source for a child to stumble upon sexually explicit material. 

The nature of sexually-explicit conduct defined in the bill would seem to exclude any ESRB-rated video game published to date. It seems clear that a game meeting the standard defined in the bill would have already been rated Adults Only (AO) by the ESRB. Curiously, the bill does not relate its provision for sexually-explicit conduct to the legal definition of obscenity. Should the bill eventually be signed into law, this could prove to be a fatal flaw from a constitutional sense.

Now that it has been passed by the Senate, the next stop for SB 152 is the Louisiana House of Representatives.

GamePolitics readers can watch yesterday's debate on SB 152 by clicking here. Scroll down to "Chamber" for June 10th. The SB 152 segment begins at 4:01:39.

UPDATE: A knowledgeable video game industry source criticized SB 152 in comments to GamePolitics:

The bill as passed by the Senate is clearly unconstitutional. It would penalize the sale of sexually oriented material to minors, but does not require that the material be legally obscene for minors, referred to in Louisiana as 'harmful to minors,' or 'obscene,' as U.S. Supreme Court precedents mandate. This was the same flaw that doomed the Illinois 'sexually explicit video games' law.
 
While it might seem that mainstream retailers have little to fear from the amended bill, as they don't carry pornography, the fact that a single depiction in an otherwise unobjectionable video game, DVD, or other material could open a retailer to liability is of grave concern.

A Japanese industry standards group has issued a ban on the controversial RapeLay and games of its ilk, according to Bloomberg.

While reports last week that the Ethics Organization of Computer Software had taken such a step were premature, the ban, which carries no legal authority, has now been confirmed. 233 Japanese software firms belong to EOCS, including 90% of the country's makers of adult software. In issuing the ban EOCS made reference to a February motion in the British Parliament which condemned RapeLay.

Such games are a thriving business in Japan, Bloomberg reports:

The adult software games industry had sales of 34.1 billion yen ($353 million) in 2007...

Computer games containing rape scenes are readily available in Japanese stores. Yodobashi Camera Co., an electronics retailer, sells ‘Rape!Rape!Rape!’... at its store in Akihabara, a shopping area of Tokyo famous for stores popular with fans of the Japanese cartoons known as manga.

With RapeLay requiring players to assault a 12-year-old girl character, Bloomberg notes that possession of real child pornography, much less the virtual kind, is not illegal in Japan. Former U.S. Ambassador Thomas Schieffer criticized Japan over the issue in January of this year:

Only Japan allows people to possess these hideous images without penalty...  Is it not time for Japan to find a way to punish the guilty?

Although the EOCS ban lacks the force of law, Singapore's Straits Times reports that most Japanese retailers will follow the edict.

Is this the next RapeLay controversy?

Although interactive DVDs aren't traditionally thought of as video games, they would appear to fall into something of a gray area between movies and games.

That may be an academic argument, but, in lodging a new protest against online retailer Amazon.com, woman-centric website Feministing treats Stockholm: An Exploration of True Love as a video game:

it looks like another game involving violence against women seems to have"slipped" past [Amazon's] radar. "Stockholm: An Exploration of True Love" is a game that allows the user to experience,

    "...a terrifyingly vivid exploration of Stockholm Syndrome, a psychological condition in which a captive falls in love with her kidnapper. And you play the part of the kidnapper. With a limited number of options, you must figure out how to make her fall in love with you."

This includes using poison gas on the victim, sexually assaulting her and using psychological abuse against her in efforts to make her "love" you. Unbelievable.

While RapeLay was offered by a third-party reseller on Amazon, Stockholm appears to shipping direct from the online retailer's inventory.

GameSpot Australia reports that government censors have banned Sexy Poker, a WiiWare title for Nintendo's popular console.

The game is apparently a strip poker affair in which A.I.-controled female opponents shed clothing when the player wins a hand. In refusing the game a rating, Australia's Classification Board said in a statement:

In the Board’s view Sexy Poker offers depictions of nudity as an incentive or reward to interactive game play. In the Board’s view, the general rule in the Guidelines for the Classification of Films and Computer Games prohibiting depictions of nudity as an incentive or reward, applies to the game play described above, as the player is shown increasingly detailed amounts of nudity following successful game-play

In the view of the Board, the impact of the game exceeds strong as except in material restricted to adults, nudity and sexual activity must not be related to incentives or rewards. As such the game cannot be accommodated in a MA15+ classification.

The MA15+ classification is currently Australia's highest, although many Down Under believe an 18+ rating is necessary to accomodate the increase in mature content in games.

Joystiq reported last month that Sexy Poker was originally developed as a mobile phone title but is being readied as downloadable WiiWare. It is unclear which regions will be able to access the game, although GoNintendo reports that the game will be released in the European market.

THANKS TO: Longtime GP reader Ryan...

Inexplicable content decisions continue to be made by the people running the iTunes AppStore.

In the latest example, Apple has banned a new version of Metaversal Studio's Hot Dog Down a Hallway game due to sexual innuendo. However, an earlier version was previously approved and remains available - double entendres included - for $0.99.

As reported by the Boston Globe:

In the game, players try to launch a hot dog down a corridor lined with various hazards. Players earn "achievement" awards, which are described using suggestive slang terms.

In the wake of the controversy generated by RapeLay, one of Japan's political parties has issued a general condemnation against computer games featuring forced sex.

The news comes by way of erotic games site Sankaku Complex (NSFW):

Japan’s Koumeito party, long a member of the ruling coalition, has condemned adult games featuring sexual coercion and violence as being a highly negative influence on Japan’s tiny rates of sex crimes. They are calling for a ban or further restrictions on their sale.

GP: I'll confess to having little knowledge of Japanese politics. Meanwhile, Sankaku Complex veers off into a rant, as one might expect for a site that supports such games, so I'll just leave it there.

Via: Kotaku

The controversial Japanese game RapeLay was cleared by a software industry screening board, reports The Yomiuri Shimbun.

According to the newspaper, the Tokyo-based Ethics Organization of Computer Software screened RapeLay without advising its publisher, Illusion, to make any edits. 235 computer game firms belong to the supposedly self-regulating organization. While an unnamed official of the group would not reveal its screening standards, he told the newspaper:

[The organization] follows the Penal Code and the law, which bans child prostitution and child pornography. Also, we ask for self-regulation of games, to ensure stories depicted stay at a permissible level from a social perspective...

 

[Given the RapeLay controversy the organization] should discuss what kind of self-imposed regulations are required to ensure [games] are acceptable to society.

The Yomiuri Shimbun also reports that RapeLay which caused an uproar when it was found to be available on Amazon.com via a third-party reseller, has been pulled from the market. The move comes in the wake of a protest lodged by New York-based women's rights organization Equality Now. Attorney Yukiko Tsunoda, a member of Equality Now,commented:

The problem isn't just about this specific game, but about all similar games still available [in Japan].