Analytical Report: Is the Entertainment Software Rating Board an Effective Tool in Protecting Children from Mature Video Games? By Phillip Alex Haddox July 15, 2001 Introduction There are three major independent rating bodies for computer, console and Internet games. The Entertainment Software Rating Board (ESRB), a sub-division of the Interactive Digital Software Association (IDSA), is the largest and most widely recognized of the three. "The ESRB is an independent, self-regulatory entity that provides comprehensive support services to companies in the interactive entertainment software industry" (Entertainment Software Rating Board, n.d., n.p.). By creating an independent review body, the ESRB hopes to avoid overbearing government legislation. The ESRB strives to prove that self-regulation of the computer game industry is possible, productive and beneficial to consumers (Pitofsky, 2000, n.p.). The government has thus far chosen to refrain from direct interference because of First Amendment issues. If the government chose to regulate games based upon their content, the action could be seen as a violation of free speech (Pitofsky, 2000, n.p.). Should the self-regulation fail to adequately protect the public, regulation of some kind would be implemented (Pitofsky, 2000, n.p.). The question at hand is whether or not the ESRB is successful in its self-regulatory goals. Do the ratings prevent violent games from getting into the hands of minors? Can the game software industry self-regulate or is governmental interference necessary? The Rating System In a prepared statement to a Senate Committee, Robert Pitofsky (2000, n.p.), Chairman of the Federal Trade Commission, stated that the "game industry requires games to be labeled with age- and content-based rating information and requires that the rating information appear in advertising." The purpose of a rating system is to specify an appropriate age group for games. Parents and retailers use the rating as a guide to ensure an appropriate purchase for a child (Entertainment Software Rating Board, n.d., n.p.). For a rating to be assigned, the game must be reviewed by three independent evaluators. The results are tabulated by computer and edited by an ESRB employee. The ESRB employee makes the final determination on the rating (Entertainment Software Rating Board, n.d., n.p.). Figure 1 details the ratings and their meanings. Figure 1 (Entertainment Software Rating Board, n.d., n.p.). Rating Description Early Childhood (EC) Suitable for children three years and older. Everyone (E) Suitable for children six years and older. Contains minimal violence, some immature behavior and minimal crude language. Teen (T) Suitable for persons 13 years and older. Contains violent content, mild language and suggestive themes. Mature (M) Suitable for persons 17 years and older. Contains intense violent content, language and mature themes. Adults Only (AO) Suitable for adults only. Contains graphic violence, sex and language. These games are not to be played by anyone under the age of 18 Rating Pending (RP) The game is under review and has no rating as yet. Web and online game sites have an identical rating system. The only distinguishing feature is the appending of "Interactive" to the rating title for online products (Entertainment Software Rating Board, n.d., n.p.). Market Segmentation Console games are not for everyone. The console manufacturers purposefully target their products at a market segment that yields them the most income. The largest overall segment in console games is boys between the ages of 6 and 11 (Thomas, 1996, n.p.). For each of the four console manufacturers, the target varies slightly. Sony Computer Entertainment Inc. Sony spokesperson Darren Horwitz said that the target segment for their games is the 13- to 17-year old male (Personal communication, D. Horwitz, 2001, June 14). Sega Corporation In a personal interview, Sega spokesperson Alicia Kim said that the target segment for their games is the 12- to 24-year old male, with a "sweet spot" of 17 years old (Personal communication, A. Kim, 2001, June 18). Microsoft Corp. Microsoft has yet to release their Xbox console machine, but have already defined a target market segment. In a personal interview, Microsoft spokesperson Jon Lenaway said that the target segment for their games is the 16- to 26-year old male, with a "a widening of that range later on" (Personal communication, J. Lenaway, 2001, June 14). Nintendo Co., Ltd. Nintendo games are geared for the youngest of console game players. "The company has…targeted a younger age group - eight-to-12-year-olds - which it dominates" (Abrahams, 2001, n.p.). Advertising and Retailing Computer and console gaming is a massive and still-growing industry. "According to Jeremy Schwartz, senior analyst with Cambridge, Mass.-based Forrester Research Inc., the video game market raked in US$6.9 billion last year, which was just slightly less than the motion picture industry's take of US$7.2 billion" (Dillich, 2000, n.p.). "Sony, Microsoft and Nintendo will spend an estimated $ 300 million to $ 400 million next year alone to promote video games" (n.a., 2000, n.p.). With sales in the billions of dollars, and advertising budgets in the hundreds of thousands of dollars, it is understandable that companies are loath to turn away money offered by minors. "Of the 118 electronic games with a Mature rating for violence the Commission selected for its study, 83, or 70 percent, targeted children under 17. The marketing plans for 60 of these, or 51 percent, expressly included children under 17 in their target audience. For example, one plan for a game rated Mature for its violent content described its 'target audience' as 'Males 12-17 - Primary Males 18-34 - Secondary.' Another plan referred to the target market as 'Males 17-34 due to M rating (the true target is males 12-34).' Documents for the remaining 23 games showed plans to advertise in magazines or on television shows with a majority or substantial under-17 audience. Most of the plans that targeted an under-17 audience set age 12 as the younger end of the spectrum, but a few plans for violent Mature-rated games targeted children as young as six" (Pitofsky, 2000, n.p.). Compliance with the rating system by retailers is varied. "In May, Sears, Roebuck & Co and Montgomery Ward Holding Corp. pulled M-rated games off the shelves, saying that it was too hard to ensure that children would not get access to them" (Berner, 2000, n.p.). Companies such as Wal-Mart, Best Buy and Circuit City argue it is ultimately up to parents to control the purchases of their children (Berner, 2000, n.p.). "Further, most retailers make little effort to restrict children's access to violent products. The Commission's surveys also showed that unaccompanied children ages 13 to 16 were able to buy both explicit content recordings and Mature-rated electronic games 85 percent of the time" (Pitofsky, 2000, n.p.). Enforcement and Penalties Each of the three self-regulatory bodies can only act on indiscretions by their own members. For example, the ESRB can take no action against a vendor who belongs to the Software and Information Industry Association (SIIA). The ESRB has their Advertising Review Council (ARC) that acts as a review body for consumer and industry complaints regarding advertising. Should a game developer be found remiss in its advertising, it is given notice by ARC and granted ample opportunity to return to compliance (Entertainment Software Rating Board, n.d., n.p.). If the developer disregards the order, the following pressure can be brought to bear (Entertainment Software Rating Board, n.d., n.p.): Revocation of ESRB membership and rating Release of information regarding the complaint and lack of compliance to the press and media Publication of a report in the magazines where the offending advertising was posted No self-regulatory body can act against a retailer who wantonly sells M- or higher-rated games to minors. Adherence to the rating system is completely voluntary on behalf of retailers. Conclusions The ESRB is an effective body in providing a content-based rating of games. As members pay annual membership fees to the regulatory bodies, plus hefty testing and rating fees per game per platform, the penalties for advertising indiscretions are unconscionably light. Despite outward appearances, game developers actively market M-and higher-rated games to minors knowing full well that vendors ignore the ratings marked on labels. Under the current system, there are no legal or monetary repercussions for vendors who sell mature-rated games to minors. Thus, games that should not be accessible to minors are readily available. It is not the fault of the ESRB, but a result of a complete disregard of the intent of the rating system by retailers. Recommendations The only way to compel retailers into compliance with the self-regulatory rating system is with federally enforced law. Therefore, the following recommendations are made: Enact federal laws prohibiting retailers from selling M- or higher rated games to minors. Levy heavy financial penalties against retailers for breaking said law. Upon repeated infractions, prohibit retailer or chain from carrying any M- or higher rated game. Bibliography Abrahams, P. (2001, May 19). Playing to win. The Financial Times Limited. Retrieved June 18, 2001, from Lexis-Nexis on the World Wide Web: http://www.lexis-nexis.com/ Berner, R. (2000, June 19). Commentary: Want a gory game? Let's see some I.D. Business Week. Retrieved June 18, 2001, from Business Week Online on the World Wide Web: http://www.businessweek.com/ Dillich, S. (2000, March 31). X-Box wants share of lucrative game console market. Computer Dealer News. Retrieved June 18, 2001, from InfoTrac Web on the World Wide Web: http://web6.infotrac.galegroup.com Entertainment Software Rating Board. (n.d.). New York, NY: Entertainment Software Rating Board. Retrieved June 18, 2001, on the World Wide Web: http://www.esrb.org/ Pitofsky, R. (2000, September 13). 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