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I hate it when people do this. They make the mistake of thinking that the ESRB M rating is equivalent to an MPAA R. Tell me, when was the last time you saw photorealistic nudity of real human beings in a videogame? When was the last time you saw gore that was realistic to the level of Saving Private Ryan? How about Saw?
No, an M rating in the videogame world is equivalent to a PG-13 movie. Even the most intense M-rated videogame is animated characters. And they're not even allowed to do things they would be allowed to in an animated movie. You could have full nudity on animated characters in a PG-13 movie, but such would earn you an instant M from the ultraconservative ESRB.
The ESRB is a pox on gaming. They present a chilling effect on free speech and they stunt the market artistically. We will never have videogames that deal with actual mature issues as long as the ESRB exists. And no, if we get rid of them the government will NOT step in. They have already tried, many times, and the courts have struck them down. If there were no ESRB, it would be the same. Games can be labelled for content without having to be "rated". Parents can decide at what age their kids are ready for content, not some shadowy secretive organization that demands tens of thousands of dollars to rate each game. And the videogame console manufacturers should be ashamed of themselves for throwing in so completely as to all forswear that no unrated or AO rated material would ever boot on their systems.
Would you buy a DVD player that would not play unrated DVDs or NC-17 rated DVDs? Of course not. But for some reason, gamers feel fine shelling out hundreds of dollars for these crippled boxes that won't play anything that might have the danger of actually having a cultural impact beyond the kitschy.