The biggest problem in my mind is the ESRB rating system itself. I must admit that I am unfamiliar with how other countries conduct their rating system, but I am fairly certain that only the USA and Canada feature the M and the AO rating.
Let's examine what the definition of each rating is according to the Electronic Software Rating Board.
MATURE
Titles rated M (Mature) have content that may be suitable for persons ages 17 and older. Titles in this category may contain intense violence, blood and gore, sexual content, and/or strong language.
ADULTS ONLY
Titles rated AO (Adults Only) have content that should only be played by persons 18 years and older. Titles in this category may include prolonged scenes of intense violence and/or graphic sexual content and nudity.
I think the ESRB rating system is a wonderful idea, and to be honest, I think the ESRB does a great job at rating games. My problem with the rating system lies in the distinction between what constitutes an M rated title from an AO rated title. The only difference between the ratings from what I can see is that an AO game features explicit nudity in a sexual situation.
Let's compare Grand Theft Auto: San Andreas to Leisure Suit Larry: Magna Cum Laude for instance.
Leisure Suit Larry features graphic sexual content and implicit sexual content. However, it scored an M rating because censor bars mask the explicit nudity.
In addition to its M rating, it has the following descriptors: "Mature Humor, Nudity, Strong Language, Strong Sexual Content, Use of Alcohol"
(The uncensored version of the game, which is rated AO, has the same descriptors by the way.)
Unfortunately, the ESRB website only features the new AO rating for Grand Theft Auto: San Andreas so we'll need to infer what it originally was by comparing it to its predecessor, GTA: Vice City.
GTA San Andreas: "Blood and Gore, Intense Violence, Nudity, Strong Language, Strong Sexual Content, Use of Drugs"
GTA Vice City: "Blood and Gore, Strong Language, Strong Sexual Content, Violence"
Ok. So "Nudity" we definitely know wasn't present in the original M rating of San Andreas. (The "Hot Coffee" mod depicts nude females in sexual situations with the main character.) The "Use of Drugs" and the "Intense Violence" were probably already there. (Although I find the "Intense Violence" descriptor a bit odd since I don't believe the game is any more violent than its predecessor.) Going back to Leisure Suit Larry, we can see that it also features "Nudity" as a descriptor, and in my mind, has far more sexual content than GTA San Andreas. The single determining factor in the ratings of each game is that one has censor bars! That's utter bullshit in my mind.
Here's what I propose the ESRB should do. The M rating needs to be slightly redefined, and the M rating also needs to have its age restriction lowered to 16. (An age difference of a year to buy a game that features the same content sans censoring bars is stupid in my opinion.) M rated games should no longer feature "strong sexual content" but rather "sexual themes"/"crude humor" or something that merely implies the idea.
My revised definition...
MATURE
Titles rated M (Mature) have content that may be suitable for persons ages 16 and older. Titles in this category may contain intense violence, blood and gore, implicit sexual content, and/or strong language.
According to my revision of the Mature rating, Grand Theft Auto: San Andreas would still be rated AO, but I never said that I wouldn't want it otherwise. The problem with AO-rated games is that public retailers don't want to touch them with a twenty-foot pole. (There are many reasons for this no doubt, but it would be nice for them to be publically available somewhere.) What cracks me up the most, is that the GTA series is a hot seller, so I am wondering how companies will try to reneg on their policies to put the game out on the shelves. Hell, Wal-Mart doesn't stock most M-rated titles, but they reneg on the ones they think will sell well. I can just imagine their response to the ESRB re-rating GTA, and it brings a smile to my face.
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Anyhow, to summarize my points that have nothing to do with any of the above argument...
a.) Rockstar should keep doing what it's doing.
b.) Take 2 Interactive is composed of assholes if they think the mod community is to blame.
c.) Nobody really bitched when a South Park cartoon was left on the disc of one of Tiger Woods games for Playstation.