We’re confident that we can work with the ESA to make this right. There are important meetings ahead that we think will be substantive and be productive in finding the right path forward.

Let’s invite the community. With the right planning, involving our biggest fans in E3 would bring back some of the raw passion the event has lost.

A stance sure to be popular with fans, but how to make it work without hampering access to the publishers for members of the press? I suppose it could be solved by keeping the meeting rooms we had this year, and adding a centralized show floor where the publishers can set up their fancy kiosks. Gamers can access the show floor proper, press still has easy access to their private showings and meetings, and in case we need a little fan reaction to the new games we've got an absolute sea of people to pull aside and give the old man-on-the-street treatment. As Crecente said earlier this week, reporting nirvana.

It sounds like a winning combination to me, though frankly it sounds like several of the other game conventions that have sprouted up during the decline of E3 over the past few years. Bring the life back to the show without making it just another show - now that's the challenge.

E3 - Go Big or Go Home [Peter Moore's Offical Blog via GI.biz]

E3 was a strange beast this year. We had an extremely strong product showing, had some great meetings, and got our messaging over pretty strongly – all at an event that had all the atmosphere of a large hospital corridor...we’d like to see something that represents the fun, dynamic nature of the industry a little better without going back to the insanity that was E3 of old.

It's OK, Simon. We miss the booth crumpet as well.

‘E3 felt like a hospital corridor’ [MCV]

Coasting right there along with the complaints was a building buzz that next year's E3 was going to have to undergo some mammoth changes. Just how mammoth? According to a number of well connected sources I spoke with during the show, there's considerable thought going into opening the doors, this time officially, to the public at next year's big event.

Reached for comment earlier today, the Entertainment Software Association had this to say:

"The ESA is currently in the process of receiving feedback and will make an announcement about the 2009 E3 Media & Business Summit at an appropriate time."

My two cents? I find Leipzig's Games Convention to be the best format going for large gaming events. In the big Europe-centric show you have a number of mammoth halls showing off the best and brightest gaming has to offer to the public. You also have a hall or two dedicated solely to the press where writers and reporters can have quiet meetings and interviews with developers, producers and businesses types. The best part for a working journalist? Being able to do your interviews with the movers and shakers of the industry and then walk five minutes to get a chance to talk to the people who play those games. It's like reporting nirvana.

Come on ESA, follow suit.

As we do every year, we’re beginning the process of surveying exhibitors and attendees to determine potential changes to the Summit. Once this is completed and shared with the ESA’s Board of Directors, we will make an announcement about the specifics of the 2009 E3 Media & Business Summit, which will occur.

Maybe they'll move it back to Santa Monica again to keep everyone on their toes. Or how about Pasadena? Bring it to Orange County!

E3 to return in '09 [GameSpot via Go Nintendo]

The bill takes effect in 2010.

"The state has ignored legal precedent, common sense and the wishes of many New Yorkers in enacting this unnecessary bill," said Richard Taylor, senior VP of communications and research for the Entertainment Software Association. "This government intrusion will cost taxpayers money and impose unconstitutional mandates for activities and technologies that are already voluntarily in place. It also unfairly singles out the videogame industry over all other forms of media."

Laws that try to enforce the ratings system by providing fines against retailers have been ruled unconstitutional over and over again — just look to states such as in California, Oklahoma, Louisiana, Illinois and Minnesota for examples. In those cases, the ESA ended up collecting hefty damages from the states — at taxpayer expense.

"One wonders where this overreach by government in New York will end," said the ESA's Taylor. "If New York lawmakers feel it is the role of government to convene a government commission on game content, they could next turn to other content such as books, theater and film."

The bill was part of a group of public safety bills that the governor signed as a "package"; the official announcement from the New York Governor's Office follows. The part about the video game bill is in bold:

GOVERNOR PATERSON SIGNS PACKAGE OF BILLS THAT WILL PROTECT THE PUBLIC SAFETY AND RIGHTS OF NEW YORKERS

Includes Reforms to Protect Children and Adults in Residential Care and “Jonathan’s Law” Extension

A New Law Will Protect Children by Automatically Revoking Teaching Certificates from Educators Convicted of Sex Crimes

New Law Will Expand Access to Civil Orders of Protection to Victims of Abuse

Governor David A. Paterson signed a package of bills, many of which are focused on public safety and protecting the rights of New York residents. Among the more than three dozen bills signed into law by Governor Paterson, some will enhance protections for children and adults in residential care, revoke teaching certificates for educators who are convicted of sex crimes and ensure the State will explore the negative effects of violent video games.

“We have the obligation to be constantly vigilant about amending our laws to protect the residents of New York State. Many of these bills will do just that by closing loopholes or creating new laws to enhance the quality of life for all New Yorkers,” said Governor Paterson. “The first duty of government is to provide a safe society for our resident to live, work and raise their families. These new laws will enhance the protections afforded to the citizens of this state and will address gaps in protection that have existed for years. I applaud the Legislature for working with me and my staff to reach agreements on fixing these problems.”

Governor Paterson has also signed a new law (S.8665 / A.11707), which will expand access to Civil Orders of Protection, allowing a person who is or was in an intimate relationship with an abuser – even though not related to that person – to seek an order of protection in family court. This substantially expands protections for victims, who for a variety of reasons may be unwilling to press charges in criminal court.

Another specific package of reforms – consisting of four bills – will represent a significant improvement for adults and children who live away from their families in residential care, particularly in mental hygiene facilities. The package includes: enhancing the standards used to determine if child abuse or neglect has occurred in residential facilities (S.8534-A / A.11753); extending the time period for retroactive requests for information under Jonathan’s Law (S.8389-A / A.10897-A); prohibiting the withholding of food or hydration from residents of mental hygiene facilities (S.8551-A / A.11482-A); and making recommendations as to appropriate work hours for direct care employees in mental hygiene facilities (S.8679-A / A.11757).

Two other bills signed by Governor Paterson are directly aimed at protecting children: A.11500-A / S.8553 automatically revokes the teaching license of any school official who is convicted of a sex offense; A.11717 / S.6401-A establishes an advisory council to conduct a study on the connection between interactive media and real-life violence in minors exposed to such media. This bill will also require new video game consoles to have parental lockout features by 2010, and mandate that games sold at retail disclose the ratings obtained from the gaming industry's voluntary rating system.

In addition to these bills, Governor Paterson signed another 31 bills relating to criminal justice and the judiciary, as well as education issues and business and finance.

"No one rings a bell saying the world has changed."

Though we can never look back on history and decide at what point, or even in what year, the television, for example, became an accepted part of our culture, Gallagher feels that history will show that the present era is the one in which video games became a recognized and accepted part of our cultural and economic landscape.

"With this new level of acceptance comes respect... and that's a loaded word," Gallagher said.

One such application of respect, Gallagher said, is the fact that an elected official from a powerful state addressed the game industry audience at E3 earlier today with Texas Governor Rick Perry's keynote encouraging more game developers to put down roots in his state.

Another is the fact that former Supreme Court Justice Sandra Day O'Connor has expressed her support for video games to teach civics lessons, with her announcement of the Our Courts game and learning tool announced earlier this year at Games For Change.

"The ESA was fighting state officials two years ago, rather than welcoming them," Gallagher said.

"Our industry has continued to grow and attract millions of new customers of all ages and from all backgrounds. Those who write and talk about our industry in narrow demographic terms are living in a different time."

He likened today's video game industry to a movie multiplex, featuring a broad range of entertainment choices that appeal to a diverse customer base. 94% of today's games, he said, are rated appropriate for gamers 13 and under.

"The... options available are endless," he said. "Who would have imagined nursing home residents would be more excited about video games than bingo or bridge? ...I believe we are entering the golden age of gaming, but we need to work together to make that entry a good one, and further weave entertainment software into the economic and social fabric of America."

"All of us lucky and privileged enough to work in this new entertainment medium should feel exceptionally proud of what has been accomplished," he said. "Name another industry that has a more passionate consumer base than ours, and a workforce as talented and energetic as ours."

Gallagher looked back on the ways that the video game industry has grown and expanded in recent years, with games reaching a broad range of new audiences and finding uses in healthcare, education, and all-ages entertainment. At the same time, he laid out five key tenets essential to the industry's continued growth, and the core gamer was at the top of this list.

"First and foremost, we must remember our base," Gallagher said. "We must never forget our core customers. Avid gamers have been with us from the start, and we must remember that as we expand our offerings."

Second, Gallagher said, the industry must welcome in the gaming converts who recently joined the industry by expanding content offerings and providing new game choices. Thirdly, he urged broadening the use of games. "The operative word is 'play,' but video games are increasingly not just recreational, but are also involved in more serious pursuits. The generation that grew up with games naturally... incorporates that educational aspect into their lives."

Fourth, Gallagher said, the industry must continue to seek innovative ways to help caregivers ensure that the games their children play are parent-approved. Today, according to Gallagher, 80 percent of children cannot purchase mature-rated games, say FTC statistics. "That's a 433 percent jump since the FTC began reviewing this subject in 2000... it places us above movies, places us above music when it comes to partnering with parents."

The fifth requirement for the industry, said Gallagher, is that it unites to continue to support policy and usage through initiatives with states that encourage the health of the games industry. Texas, Georgia and Wisconsin already provide economic incentives to the industry, and Gallagher said the ESA will continue to work with elected officials both on the state and federal level to expand support for the industry and to promote awareness of ESRB ratings.

Gallagher called on members of the industry and consumers alike to support the ESA's fight against unconstitutional anti-game legislation by joining the Video Game Voters Network - his goal is to gain 200,000 supporters by next year's E3. "If you haven't done so already, I encourage you to join the VGVN ... and make your voice heard."

"The industry has come a very long way in a very short time, and we're finally gaining the respect we deserve... now is the time that we need to keep working and doing what we do better than any other industry or community so that today's level of recognition and accomplishment will pale in comparison to what we are about to achieve."

Why Activision left the ESA [Variety]

"Minnesota's citizens should be outraged at paying the bill for this flawed plan. Minnesota's public officials ignored legal precedent and instead pursued a political agenda that ultimately cost taxpayers money," said Michael D. Gallagher, CEO of the ESA, which represents U.S. computer and video game publishers. "Courts across the United States have ruled consistently that video games are entitled to the same First Amendment protections as other forms of art, such as music and literature."

Minnesota Pays $65,000 in Legal Fees to the Video Game Industry Taxpayers Pay for Politicians' Decision to Pursue Unconstitutional Law

JUNE 30, 2008 - Washington, DC - The Entertainment Software Association (ESA) announced today that the state of Minnesota paid $65,000 in attorney fees and expenses incurred as a result of their successful challenge to Minnesota's unconstitutional video game law. The ESA, which prevailed over similar unconstitutional laws in nine other jurisdictions, now has been awarded close to $2 million in fees and expenses spent in defending gamers, developers and publishers' First Amendment rights.

"Minnesota's citizens should be outraged at paying the bill for this flawed plan. Minnesota's public officials ignored legal precedent and instead pursued a political agenda that ultimately cost taxpayers money," said Michael D. Gallagher, CEO of the ESA, which represents U.S. computer and video game publishers. "Courts across the United States have ruled consistently that video games are entitled to the same First Amendment protections as other forms of art, such as music and literature."

On July 31, 2006, Judge James M. Rosenbaum, US District Court, Minnesota, issued a permanent injunction to halt implementation of a Minnesota law which sought to penalize minors for the purchase or rental of M- or AO-rated games. In his decision, Judge Rosenbaum stated that "...there is no showing whatsoever that video games, in the absence of other violent media, cause even the slightest injury to children." The Court then raised questions about the Legislature's motives in passing such an obviously unconstitutional law, stating "...several other states have tried to regulate minors' access to video games. Every effort has been stricken for violating the First Amendment....The Court will not speculate as the motives of those who launched Minnesota's nearly doomed effort to "protect" our children. Who, after all, opposes protecting children? But, the legislators drafting this law cannot have been blind to its constitutional flaws."

Gallagher said that "politicians need to realize that the key to protecting our children from inappropriate media content is not haphazard legislation, but rather parental education. Video games have a first class ratings system supported by retailers, opinion leaders and parents. It would be a far better use of public funds to help support this system, rather than continue to pursue unconstitutional legislation that works against it."

The Entertainment Software Rating Board (ESRB) assigns content ratings to computer and video games. According to the Federal Trade Commission (FTC), 80 percent of parents are aware of the ESRB system, and over 70 percent of parents use it in making their buying decisions. And, a new FTC report released last month shows that 80 percent of the agency's undercover underage shoppers were not able to buy M-rated video games, 433% above the rate measured in 2000.

The Entertainment Software Association is the U.S. association dedicated to serving the business and public affairs needs of companies publishing interactive games for video game consoles, handheld devices, personal computers, and the Internet. The ESA offers services to interactive entertainment software publishers including a global anti-piracy program, owning the E3 Media & Business Summit, business and consumer research, federal and state government relations, First Amendment and intellectual property protection efforts. For more information, please visit www.theESA.com.

Maas told Kotaku that Crave left the ESA because the company is being sold. Music distribution firm Handleman Company currently owns Crave, after purchasing it for $72 million in 2005.

"Crave’s departure from ESA at this juncture is not a statement against the value provided by our longstanding membership, but rather was motivated by our need to focus on the impending sale of our company," said Maas. We will be re-evaluating our decision, hopefully in the near future. Crave still supports the goals and aims of ESA."

Maas' comments echo the statements of support for the organization's goals stated by other publishers who have left the ESA, a list that now includes Activision, Vivendi, LucasArts and id. Yesterday, the ESA commented on Crave's departure, and today the organization updated its official member list to reflect this most recent exit.

“We can confirm that Crave has decided not to renew its membership in the ESA," said Rich Taylor, the ESA's senior VP of communications and research. "We value each member of our association, but respect their decision. In conversations with Crave, representatives stated that they value their longstanding membership with the ESA and remain committed to the values and goals of the association."

Crave becomes the fifth publisher to leave the association, now down to 24 member companies. Activision and Vivendi broke ties with the ESA in a highly-publicized exit, and LucasArts and id soon followed. Speculation holds that the rising cost of membership dues might have played a role in these departures, after the ESA spent $5 million dollars to move E3 last year, while displeasure with the ESA's current leadership and a debate over the necessity of E3 have also been rumored to play a role.

We've contacted Crave, and have yet to receive comment.

BREAKING: Another ESA Departure as Crave Leaves Game Publishers Trade Group [GamePolitics]

Employers find that using games to train not only reduces costs and increases efficiency, employees retain training through interactive means more than they would a simple slide presentation or training videos (known in wage-slave parlance as "Nap Time").

Interesting number, for sure, but the statistics I really want to see is how much interactive gaming goes on in the workplace that employers are completely unaware of. Of course that would require cameras in the bathrooms to monitor DS and PSP usage, which is still unfortunately illegal. Hit the jump for more numbers!

USE OF VIDEO GAME TECHNOLOGY IN THE WORKPLACE INCREASING

Study Finds 70 Percent of Major Employers Use Interactive Computer Training That Includes Game-like Simulations

JUNE 23, 2008 – WASHINGTON, DC – Seventy percent of major employers utilize interactive software and games to train employees according to a new study released today by the Entertainment Software Association (ESA). The study data also showed that more than 75 percent of businesses and non-profits already offering video game-based training plan to expand their usage in the next three to five years. And more than three-quarters (78%) of organizations not utilizing this technology today are likely to offer it in the next five years.

“Businesses across the spectrum, from automobile manufacturers to financial service providers, are utilizing entertainment software to help educate their employees to better serve their customers and improve their bottom lines,” said Michael D. Gallagher, CEO of the ESA, the U.S. association representing computer and video game publishers. “Interactive technology is a valuable tool in workforce development and this study underscores the fact that video games have become a mass medium helping Americans live, work and of course play.”

The top uses of video game-based training by major American employers include: compliance training; training for specific job functions; IT training; management training and customer service training. Seventy-seven percent of these training programs tested employee knowledge and 55 percent included interactive role playing.

The survey found a vast majority of organizations offering video game-based training were satisfied with the results and sophistication of the training. Respondents said the biggest advantages of video game-based training are:

* a reduction in costs;
* more efficient and faster training;
* the ability to apply consistent training across all parts of an organization;
* the ease of measuring employee participation; and,
* better information retention.

Managers of three in four companies also said their employees like video game-based training more or the same as traditional training and their employees found the convenience and ability to learn at their own speed particularly attractive.

"The demand for training games is definitely rising as managers look for new ways to train their employees that are both effective and more compelling than the standard eLearning fare," said Marc Prensky, founder of Games2train, a company created in 1999 to serve the growing demand for corporate game-based training. "In my experience, computer, video and, increasingly, cell phone based training games are more successful than traditional training methods, because employees find them more engaging, thereby increasing the likelihood of completion of the training and retention of the required information and concepts. In addition, simulation-based games allow employees to learn and practice needed physical and mental skills, and thus be more effective when they get on the job."

Games2train (www.games2train.com) created more than 50 software games for companies such as American Express, Bank of America, Charles Schwab & Co., Estée Lauder Companies, Inc., JP Morgan Chase & Co., Nokia Corporation and Pfizer Inc., as well as training games for the US military.

Canon U.S.A., for example, uses a video game to train new copier technicians. To play, technicians must drag and drop parts into the right spot on a virtual copier. IBM developed “Innov8,” a role playing game that is said to teach graduate students a combination of business and IT skills. The Hilton Garden Inn, meanwhile, introduced the first training game for the hospitality industry, which places employees in a virtual hotel, interfacing with customers and fielding typical guest requests.

The national poll, conducted for the ESA by KRC Research, surveyed the management of 150 large U.S. companies and non-profits between March 17 and April 2, 2008.

The ESA is the U.S. association dedicated to serving the business and public affairs needs of companies publishing interactive games for video game consoles, handheld devices, personal computers, and the Internet. The ESA offers services to interactive entertainment software publishers including a global anti-piracy program, owning the E3 Media & Business Summit, business and consumer research, federal and state government relations, First Amendment and intellectual property protection efforts. For more information, please visit www.theESA.com.

Video game makers spent $714K to lobby in 1Q [CNN, via Ars Technica] [Pic]

Fewer Players in the Gaming Group [Washington Post]

Technology columnist Mike Musgrove got Entertainment Software Association CEO Michael Gallagher on the horn (we got him first!) to talk about, what else, ESA's membership losses. Everyone here should be familiar with the story and the pressures that realigning E3 have brought to bear on membership dues, believed to be the motivation for so many big name publishers flying the coop. ESA refers us to the companies to get the reasons for leaving, and so far none have, really.

Well Musgrove got Id CEO Todd Hollenshead to say that Id's departure was "probably temporary and was not political. It was just a question of other priorities this year that we wanted to focus on." OK, pretty vague line but, hey, at least it's something. And it makes some kind of commitment to Id returning. One wonders if others have the same point of view as Id, and what must happen in the meantime to bring about their return.

Also, ECA chief Hal Halpin told Musgrove he knew of two other game companies planning to leave, and more who are unhappy but sticking around.

Fewer Players in the Gaming Group [The Washington Post via GamePolitics]

Earlier this week we had a chance to ask a number of pointed questions of Gallagher about some of the news that has recently rocked the association that he runs.

In this exclusive first in-depth interview with Gallagher about the perceptions and problems plaguing the ESA, he reveals that the annual E3 tradeshow made up about 85 percent of the association's operating funds and that the membership dues increases sparked by the show's downsizing were in some cases "substantial." He also offers his thoughts on why companies like Activision, Vivendi, LucasArts and id have left the fold of the association and why the ESA, despite the recent troubles, is still an important and viable part of the industry.

How much advance notice did you have that Activision, Vivendi, Lucas Arts and id were going to leave the ESA?

Each company gave the ESA ample notice. In discussions, they expressed gratitude for our work and continued support for the mission of the ESA. The public comments from all involved reflect that.

What reason did they give for leaving the ESA?

I would refer you to those companies for their reasons. They are publicly on the record supporting ESA’s mission, but their own business circumstances led them to that decision.

The business environment for video games is very complicated today. Some games are hugely successful – and very costly to develop and publish – but those are greatly outnumbered by those that do not do well in the marketplace. Even though the industry as a whole had a record year last year, with revenues up over 43%, that success has not been spread evenly.

Do you think that the increased cost of ESA membership factor into their decision?

Again, I’m sure this was a tough decision for those few companies, but would encourage you to contact them.

How much did ESA membership dues go up, percentage wise?

To answer this, it’s important to provide some context. In the past, E3 was a revenue-generating entity. As such, approximately 85% of the ESA’s operating funds resulted from that event. The trade show surplus allowed the ESA to provide membership at significantly discounted rates.

With the introduction of the new E3 Media & Business Summit, our Board of Directors increased membership dues to fund the ESA’s work. In some cases the increase in dues was substantial. Without getting into specifics, which are private and specific to individual ESA members, each company pays a certain amount based on North American sales.

Do you have any sense how happy your current member companies are?

Again, I would direct you to the member companies for that answer. The video game industry is very fortunate to have an abundance of strong, innovative, successful companies. Those companies are still very much engaged and supportive of ESA and its mission. In the past year, our industry has faced serious state government challenges, including attempts to regulate the sale or distribution of video games, which we have successfully beaten back. In addition, computer and video game companies are currently enjoying great economic and critical success and ESA has been a leading force in amplifying that good news to key audiences that are critical to a robust environment for the industry. We know our members appreciate these successes and remain deeply engaged in the ESA’s activities and are supportive of our mission.

Is the exodus from ESA over or do you expect more to follow suit?

The membership of any association fluctuates over time. For example, though it didn’t receive much attention by the gamer press, in the past nine months we added four new members—Epic Games, MTV Games, NCSoft, and Codemasters. What’s important to remember is not the changes in membership rolls, but the value the ESA provides to the industry –- a proven track record of defending First Amendment rights, educating elected officials and the uninitiated about computer and video games, and creating an environment beneficial to the entire industry. I would expect that the ESA will continue to make adjustments to ensure that we are delivering the best value and highest benefit to our members in the years to come.

Our industry has changed dramatically since the association was formed 13 years ago, and it is experiencing significant growth and change today. One thing that has become very clear in my first year on the job is that the huge growth the industry has undergone – 43% revenue growth last year, the expansion of online gaming, new revenue streams and models – has given rise to scores of entities that would benefit from participation in the ESA. This overall industry growth is going to be reflected in the ESA of today and tomorrow regardless in the number of members we have on our rolls on any one day.

How unanimous was the decision by the ESA’s board to downsize E3? Were any of the now former members of the ESA dissenters?

That decision was made well before I arrived and I am not going to talk about the specific votes of individual board members. The ESA Board collectively made the decision. What I will say is that the E3 Business & Media Summit in July will display the best the entertainment software industry has to offer. And, the exclusive, invitation-only nature of the event will help ensure an intimate environment, conducive to meeting business and media needs.

How unanimous was the decision by the ESA’s board to move to Santa Monica? And to move back to LA? Were any of the now former members of the ESA dissenters?

Again, that decision was made well before I arrived at ESA, and I am not going to talk about the specific votes of individual board members. The ESA Board heard the feedback provided by exhibitors, journalists, guests, and their own staffs and decided to move the event.

Was the roughly $5 million penalty paid by the ESA to the LA Convention Center the entire cost of breaking the contract that ran through 2012 or was that only for breaking it for a year?

t’s important to note that the $5 million figure that was reported isn’t a penalty or fine assessed by the LACC. It was the cumulative one-time sum from a number of different factors—all of which are normal when moving an event.

Was the decision to move back to the LACC in anyway tied to the penalty paid, in other words did it lessen the fines?

No, the decision to hold the E3 Media & Business Summit in Los Angeles was made to meet the needs of both exhibitors and participants. It offers a centralized location for the number of activities and events occurring during the Summit and has the necessary infrastructure to support the number of attendees, staff, and personnel required for a successful Summit.

How did the ESA manage to land space at the LACC so quickly? Are you in a new multi-year contract with LACC? Did the ESA have to pay more than usually to get space in the center on such short notice?

The LACC space was available and we were able to close quickly on a contract because of our long-standing good relationship with both the city and the LACC. I’m not going to get into specifics our agreement.

Will there be an E3 next year?

Absolutely, The E3 Media & Business Summit will remain the preeminent gathering for the computer and video game industry on this continent. As we have done in the past, we will survey participating companies, members of the media and other Summit participants to learn after this year’s event and decide how we can consistently improve subsequent editions of E3 next year and in the years to come.

Is the continuation of E3 in doubt or up for discussion by the board?

See above.

In today’s state of video gaming, with the industry often being included in mainstream coverage, both as a form of entertainment and as business news, does there need to be an E3?

Yes. Remember, the E3 Summit is first and foremost about getting business done. The Summit provides key players within our thriving industry a much-needed window for high-level meetings in a business-like setting. E3 also provides a time and venue for valuable networking opportunities and dedicated time for interaction with key analysts and members of the media.

Is the board considering shifting their attentions to a new event that is open to the public, perhaps as a way of replacing E3?

To be honest with you, the ESA and our members’ E3 Summit teams are right now wholly focused on ensuring a productive, efficient, and professional experience for attendees this July. That’s where our focus belongs. As we have done following past editions of E3, we will survey various participants and, based on that input, we will set about designing the 2009 edition of the Summit.

Does the recent exodus of member companies reflect a loss in faith or of value of the ESA?

The loss of a few members reflects the individual choices these companies made for their own business reasons. There are hundreds of trade associations in Washington. Members come and go over time. The same has and is happening at ESA. We added members last year and have lost a few members this year.

ESA’s success in helping to create an ecosystem conducive to the growth and innovation we are seeing in the computer and video game industry is indisputable. Our industry is growing and evolving and these changes are going to be reflected in the ESA’s membership, mission and activities. The industry of today will likely be different than the industry of 2015. We look forward to continuing our role as the voice and face of the industry in Washington, DC and in state capitals around the nation in the years to come and carrying forward the policy agenda that promotes an environment where video games thrive now and in the future.

With first amendment and gaming issues fading away, the level of awareness in the rating system rising and E3 no longer the preeminent gaming event in the world, does there need to be an ESA?

I actually disagree with the premise of your question. First amendment issues aren’t fading away at all. In the past year we’ve seen serious state government challenges, including attempts to regulate the sale and distribution of computer and video games. We also are starting to see unconstitutional proposals that would tax video games differently than other forms of first amendment-protected material. Now, more than ever, we have to maintain our vigilance and promote the ESRB rating system, public/private partnerships, and applaud elected officials who work with us to ensure the games children enjoy are appropriate.

Look, it’s a simple equation. Unconstitutional limitations on entertainment software inhibit not only developers in what they can create, but also in the types of games consumers enjoy. Also, the tax proposals we see hurt ordinary consumers, too. The issues we’re at the forefront fighting are not just publisher or developer issues. They are challenges to the entire art and entertainment of video games.

Knowing this, gamers need to be involved in letting their elected officials know that gamers are politically active and vote. We encourage all those interested to visit www.videogamevoters.org and sign up.

ESA is the leading defender of the industry in all of these challenges. As an industry, we will continue to face challenges as we grow into new business models. As online gaming blossoms, issues of privacy, law enforcement, and helping parents to protect children will be a part of a larger discussing. ESA will continue to be the singular voice of the industry in those debates. Where foreign governments are not fully protecting our industry’s investment in innovative and creative products, ESA is leading the charge to encourage sanctions and open up new markets and opportunities. Similarly, where misguided and unconstitutional state legislative proposals are defeated, ESA will be front and center, defending the creative forces within this industry.

These opportunities and challenges have not, and in the foreseeable future will not, disappear. As our industry grows and changes the need for representation in Washington and state capitals will grow and evolve. The political battles we are fighting today could be very different form the battles we fight next year and five and ten years from now. As a result the need for the ESA will exist for many years to come.

Some anonymous company sources have expressed concern over Michael Gallagher’s leadership, they say he isn’t vocal enough and blame some of the recent issues with the industry on him? How do you respond to that?

As a matter of policy, ESA doesn’t comment on blind quotes and speculation. If they are anonymous, it shows the quality of the source. Many industry leaders have publicly endorsed the ESA mission and my leadership.

You better sit down, this gets really confusing really quickly.

Yesterday The Escapist broke the news that E3 keynoter Texas Governor Rick Perry stirred up some controversy by attending a Texas' Cornerstone Church sermon given by the Rev. John Hagee. During the service Hagee told the gathering that non-christians are going straight to hell. Perry later said he agreed with the sentiment. The story failed to mention that the sermon took place in 2006, something the Wired follow-up did explain.

Then Game Politics, a ECA site which follows the convergence of politics and gaming, picked up the story and added some commentary, calling Perry a bizarre keynote choice and asking the ESA to rescind their offer. It also said that E3 2008 was being politicized by ESA president Michael Gallagher.

In exchanges with Joystiq, Dan Hewitt, the ESA director of communication, called into question Game Politics' objectivity, pointing out that it was owned by ECA.

"If the ESA posted a blog and called it a news site, journalists would rightfully balk and it wouldn't pass a smell test. Remarkably, GamePolitics doesn't face the same scrutiny even though it's funded by the ECA and tainted with anti-ESA vitriol. At the end of the day, calling GamePolitics a news site is as laughable as saying there's a Cuban free press."

Game Politics' editor Dennis McCauley defended the site, saying he "stands by what he wrote regarding the appropriateness - or lack thereof - of having Gov. Perry deliver the E3 keynote."

Reached for comment this afternoon, Rich Taylor, senior vice president for communications and research at the ESA, had this to say:

“The ESA welcomes open, honest and frank exchanges with the media. Dan’s comments to Joystiq, which were directed specifically at GamePolitics, were an expression of frustration based on the consistently biased approach of reporting on that site. “

So two issues for the price of one: Is a religiously outspoken governor the appropriate choice for E3 keynoter? Does the fact that ESA rival, the ECA own GamePolitics call into question their objectivity.

ESA calls out GamePolitics for unfair coverage [update] [Joystiq]

The publisher departures follow decisions made by the ESA board surrounding last year's E3 move to Santa Monica that ultimately cost the association $5 million and necessitated raising its membership dues, as Kotaku reported earlier this week.

Both id and the ESA confirmed the departure; while id Software declined to comment, ESA senior VP of communications and research Rich Taylor responded:

"We can confirm that id Software has decided not to renew its membership in the ESA. We admire their creativity and innovation. We also respect their decision," he said.

"The ESA continues to lead the thriving video and computer game industry. We are dedicated to protecting intellectual property, preserving First Amendment rights and fostering a beneficial environment for the entire entertainment software industry."

The Entertainment Software Association paid more than $5 million last year to stop hosting their annual trade show in Los Angeles, only to bring their new, downsized show back to the city a year later, according to IRS documents obtained by Kotaku.

The expense of breaking a contract that locked the show in LA through 2012, along with the expected drop in E3 revenue associated with the event's downsizing, led the association's board to drastically increase their membership dues last year.

Rich Taylor, Entertainment Software Association senior vice president of communications and research, said that all of the changes made by the association, including the costly jump from LA and the increase in dues, were decisions made by the group's board, which is made up of executives from 19 of the association's 25 member companies.

"I don’t think it’s a mistake," he said. "There was a model in Santa Monica that we tried and after the event we polled participants across the board about what they thought of it and then we tried to figure out what we could do to make it better and returning to the Los Angeles Convention Center was the right decision."

But that decision, the accompanying jump in dues, may have been the impetus for three high-profile member companies dropping out of the association. Lucas Arts, Vivendi and Activision all canceled their memberships with the association in the past month. While all three companies declined to comment for this article, it is rumored that the increased cost in dues played a part in their decision to leave the association.

Taylor also declined to comment on their departure.

Documents filed annually with the IRS by the Entertainment Software Association, and obtained through open records request by Kotaku, spell out the more than $5 million dollar change of heart and its almost immediate repercussions.

According to the forms, the association paid $5,377,808 in "event cancellation fees" tied to getting out of their contract with the Los Angeles Convention Center. Those same forms show that the association's membership dues more than quadrupled in their 2006 fiscal year, which ended on March 31, 2007, jumping from more than $1 million in fiscal 2005 to more than $4.5 million in fiscal 2006.

Taylor said that the board members knew going into their decision to move from the convention center that there would be sizable fees, they also realized that it would mean what they called a shift the annual show from a "profit generating E3 to a revenue neutral summit."

"In the past the membership dues here were deflated significantly because of income that was coming from other sources including the summit," Taylor said. "Now we're closer to what other trade associations charge."

Historically, the association survived mostly on the revenue generated by the summit, but when the board decided to cut down on the size of the show and make it "more intimate" they realized revenue would drop.

Although the 2007 fiscal year ended in March, the association had not yet filed that information with the IRS and figures from the form were not yet available. In the 2006 fiscal year, which included the last of the big E3 shows, the association brought in nearly $18.5 million from the show, up about a million from the previous year. Taylor declined to say how much was brought in from last year's smaller show.

"We are still working to close the books on last fiscal year," he said.

Taylor disagreed that this year, with three well known members dropping out and the E3 Critics Awards in jeopardy, has been a trial by fire for the E3 Summit & Trade Show.

"Traditionally there have always been a lot of issues leading up to E3, this time they are just more public," he said. "This is just part of the pleasurable experience of putting on a trade show. I don’t think there is any trial by fire, I think it’s how the process works.

"Anyone who is anybody who has anything to do with the industry will be at this year's E3."

Texas Governor Rick Perry will be speaking at this year's E3 Media & Business Summit in July, the Entertainment Software Association Announced.

“Governor Perry and the E3 Media & Business Summit are both great success stories. The Governor’s keynote address is especially timely given the high concentration of entertainment software developers and publishers in Texas as well as the state’s long-standing support of our industry,” said Michael D. Gallagher, CEO of the ESA, which represents U.S. computer and video game publishers. “The Governor’s forward-thinking leadership in encouraging the growth and development of our $18 billion industry is a roadmap for other state executives who want to transform their state economies for the 21st century.”

The governor will be talking about the confluence of politics and video games, a topic that is likely to come to a head this election.

I think having [Activision and Vivendi] pull out of the ESA reflects an unfortunate lack of leadership... They're a big company and we feel that when you're a big company you've got a responsibility to consumers to work on policy issues which are very, very important to consumers. And the best way to do that is with an industry consensus... There's always tensions inside these organizations, but for the most part it works... So it was sad to see them step away from that responsibility. We hope that others don't do that, but I think that the onus is on the ESA to prove that membership in it is good for the company and good for consumers. And I think we're going to see the ESA redouble its efforts to prove that.

And if not, Jeff Brown is here to pitch in!
Lack of Leadership [Games Industry]

The association assumed that the departed companies' games would no longer be eligible for any of the annual "Best of E3" awards, given out by an independent group of Game Critics' Awards judges at each year's show.

But Geoff Keighley, GameTrailers executive producer and co-chairman of the Awards, said that decision hasn't been made yet. The critics' group, of which Kotaku managing editor Brian Crecente is also a member, still needs to meet to discuss the issue and decide how exactly to define which games are and are not eligible.

"The fact that Activision is not a registered exhibitor for E3 has brought to light the issue of how to determine the eligibility of games," Keighley said.

At first blush, the issue seems clear-cut. Not in E3? No "Best of E3" award. But, said Keighley, "A precedent has been set that in the past, judges have voted on games that have been presented off the show floor at hotel suites and across the street from E3."

Adhering too closely to the rules might lead to problems, as with Capcom's disqualification from the Academy of Interactive Arts and Sciences' DICE Summit awards show. Neither the critically-acclaimed and highly successful Resident Evil 4 nor the innovative fan-favorite Okami were eligible for any form of recognition, because Capcom had refused to pay membership fees to join the Academy.

"It would be a shame for me if the best game of E3 didn't win the Best of Show award because it was demoed across the street from the show floor," Keighley said. Capcom had no comment on the present issue.

Keighley's co-chair at the Game Critics' Awards, Rob Smith, said it's impossible to decide until the judges know what Activision and Vivendi have planned. At this point, neither of the companies, whose merger will soon be official, have revealed their plans for a possible summer showcase of their games.

"From Activision's standpoint, they were aware it could impact them. But their decision [to leave] the ESA is going to impact their business in a variety of areas," said Smith. "They're dealing with each of those on whatever basis they have to as an organization. They haven't lobbied us to ensure inclusion... the Game Critics' Awards wants to be able to recognize the most exciting games coming out this year, and the politics involved are not really a part of what we're about."

"That all being said... we really don't know what that means, because the game does have to be shown at E3, and nobody knows if they are."

Smith also said that he's yet to hear from either Sony or Microsoft regarding any possible award policy issues involving third-party titles. Neither Sony or Microsoft provided comment to Kotaku, either.

Activision itself declined to comment on the issue, but while the judges have their own criteria on which to make a decision, how do the other publishers feel? After all, all ESA member companies pay dues to the organization and incur heavy expenses to be part of E3. Should Activision and Vivendi receive the same considerations for E3 awards as the ESA's members do, even without being a part of the organization and, by association, the event?

While Electronic Arts, an ESA member company and a supporter of E3, sees that it is an issue, they remained impartial in their response to us.

"The landscape has changed considerably, obviously," said Mariam Sughayer of EA's corporate communications. "But the way we see it is that this is... a debate happening between the ESA and the E3 judges. We don't have comment on the way we think it should go, or which way is right."

"The dust is going to have to settle on this; there's a lot up in the air. We're letting the ESA decide it with the judges."

For its part, the ESA also declined to comment on the issue.

Making the debate somewhat more complex, according to the Awards' Keighley, is the absence of a financial component from the Game Critics Awards, which gives the judges latitude to make their own eligibility determinations.

"The fact we are independent awards [lets us] define our own rules for eligibility," said Keighley. As publishers revise their part on the E3 show floor, you have to consider the best way to move forward, to ensure we are rewarding the most creative and promising games that will shape the future of the industry."

"Our organization isn't for profit," Keighley said. "It's a volunteer organization, a consortium of journalists, so we can be pure."

Nintendo was unavailable for comment due to the Wii Fit launch, and as of press time we are awaiting reply from Vivendi.

"Today, we can confirm that one of our members, LucasArts, has decided not to renew its membership. We value each member of our association, but respect the unique factors that led to LucasArts' decision," Rich Taylor, senior vice president of communications and research at the ESA, told Kotaku.

Margaret Grohne, director of Public Relations for LucasArts, confirmed to Kotaku that the publisher will still be participating in E3:

"We can confirm that LucasArts is no longer a member of the ESA. As a company we are still committed to bringing consumers the best interactive experience possible and support the ESA's mission in the industry," said Grohne. "LucasArts will be participating in E3."

The complete statement from the ESA's Taylor, excerpted above, is as follows:

"Since its creation in 1994, the Entertainment Software Association (ESA) has grown and evolved into the pre-eminent voice of the video and computer game industry. The organization has 25 members, including three companies that were welcomed last year.

"Today, we can confirm that one of our members, LucasArts, has decided not to renew its membership. We value each member of our association, but respect the unique factors that led to LucasArts' decision.

"Last year was a record year for an industry which is becoming an increasingly important part of the nation's social, cultural and economic landscape. We are confident the industry will continue to thrive and ESA will continue to create a beneficial environment for the entire entertainment software industry."

Today, it would appear that another publisher may be joining Activision and Vivendi as a former ESA member, as GamePolitics points out that LucasArts is no longer listed as one of its members, a recent and unannounced change. The official E3 Summit web site still lists LucasArts as a participating company. We have a request in with the publisher to learn more about their ESA status and will update when we hear back.

ESA Members

By: Brian Crecente and Leigh Alexander

Rumored developer displeasure with Entertainment Software Association president Mike Gallagher may be partially to blame for nearly half a dozen member publishers dropping out of this year's E3 conference, Kotaku has learned.

This morning we broke the news that not only are Vivendi and Activision not attending this year's E3 they've both decided to drop out of the association all together. We've since learned that NCSoft, Her Interactive and id Software have all decided not to attend this year's show, though they are all remaining members of the association.

Only NCSoft had returned calls about the decision as of press time, saying that their decision to not attend E3 this year, the first time they won't in the company's history, was due to the development cycle of their games and in no way reflects on the ESA or it's leadership.

But several industry sources who wish to remain anonymous say Gallagher is in part to blame for issues surrounding this year's E3.

Wedbush Morgan analyst Michael Pachter also believes that the drop-outs are spurred by decisions made by Gallagher, who he says is less knowledgeable and sophisticated than his predecessor, Doug Lowenstein.

"Lowenstein was a very savvy industry veteran who paid attention to the goings-on in the industry and cared what the community had to say," Pachter said. "The new person.. whose name completely escapes me because I've never met him or heard from him, is far less knowledgeable and sophisticated about this industry than Doug was and is going to make some rookie mistakes."

"Doug used to be a very visible spokesperson in congress... when you'd get these [things like] Barack Obama saying videogames are corrupting our youth or MADD saying that Take-Two should pull GTA off t he shelves, you would hear Lowenstein immediately shoot back. I would guess that Activision doesn't perceive the same value from the ESA as they did under Doug's leadership. I criticize [Gallagher's] lack of drive to learn about the industry."

While the ESA and Gallagher declined to comment for this story, several sources tell us that Gallagher has come under fire for what is perceived as his poor handling of the association.

In March, GamePolitics reported that the ESA shuttered its New York office, and in so doing fired that office's head, senior VP and general counsel Gail Markels. Markels, who reportedly earned $317,000 in 2005, successfully led all the ESA's litigation efforts against unconstitutional video game laws.

The ESA apparently trimmed its lobbying initiatives throughout 2007 while budgets rose, according to a report made by GameSpot on public filings. Last year, the Association spent a record $2.86 million on lobbying — even though it chose to confront fewer issues, removing lobbying on online gambling, taxation of virtual property, and Internet privacy in favor of focusing solely on constitutional, copyright and relevant trade issues.

Pachter points to the timing of this year's E3 as another mistep. He believes that the new July date just doesn't work out for Activision and Vivendi for financial reasons. Most game companies have a financial quarter that ends in June. Those companies usually have to observe a two-week "quiet period" following the end of the quarter, during which they may not speak to investors — and Pachter says that Activision is especially strict about observing theirs to the minute.

With that in mind, the July E3 is just financially inopportune for both Activision and Vivendi based on the schedules of their fiscal quarters.

"And a Vivendi that feels snubbed could be a big detriment to the ESA, Pachter said. "Vivendi's revenues are so heavily from online subscriptions, which technically don't fall under the ESA... but if ESA ever cares to represent the MMO companies, they really have to have Blizzard as part of their consortium. And there's no question that the market in 20 years is going to shift to a more heavily-utilized download model."

Activision and Vivendi, for their part, say the decision to not renew their membership in the ESA this year was purely a business one.

"After careful consideration, Activision has decided not to renew its ESA membership for business reasons and will not be participating in any official E3 activities. We appreciate the work that the ESA has done over the years in promoting the interactive entertainment industry with state and federal governments and wish the ESA best of luck with the show."

Vivendi sent a similar statement to us today. Both declined to comment about Gallagher's leadership of the ESA.

Activision did confirm with us that while they will not be attending the show, they will be holding an event on the first day of E3, though not at the convention center. Vivendi has not yet commented on whether they will be showing outside of the convention center during the show's week.

The ESA contacted us after the story went live to clarify that Codemasters will be attending E3 afterall.

"While the Entertainment Software Association remains the preeminent voice for U.S. computer and video game publishers, we can confirm that Activision and Vivendi Games opted to discontinue their membership. The ESA remains dedicated to advancing our industry's objectives such as protecting intellectual property, preserving First Amendment rights, and fostering a beneficial environment for the entire industry. Our high level of service and value to members and the larger industry remains unchanged."

- Rich Taylor, Senior Vice President of Communications and Research, Entertainment Software Association

This comes a day after it was noted that Activision and a number of other notable publishers were not listed as showing at the industry's big conference.

Neither Activision nor Vivendi have responded to requests for comment. More as this breaking story unfolds.

Nonprofit advocacy group the Parents' Television Council takes their position on enforcement beyond just demanding legal consequences for retailers who sell M-rated games to kids under the age of 17. The council wants games like GTA IV locked up behind store counters, like cigarettes, tobacco and porn.

Gavin McKiernan, national grassroots director for the council, has never played a GTA game and does not dispute the right of mature adults to have access to it.

"The PTC thinks that there's room in our society for adult products, be they video games, movies, magazines, guns, whatever you want," he said. "But scientific research has shown and common sense tells you also that until [as children] we reach a certain stage, your mind and body are still growing and things have a different effect on you than they do as an adult and you don't have the perspectives to make the best decision."

"I know I was a blithering idiot when I was 16, and most people were," he said.

McKiernan believes that violent media actually causes harm to young people, pointing to studies from the University School of Medicine in Indianapolis, Michigan State University, and the University of Oklahoma Medical School, among others, that appear to demonstrate a correlation between exposure to violent games and "aggressive" brain activity in adolescents.

"All of these correlations are the basis for preventative medicine... and the need for preventative steps to be taken, and the medical community accepts that on the whole," he said. "The potential for harm has been proven over and over again."

Video games like GTA IV are evaluated by the Entertainment Software Ratings Board and assigned a rating that indicates the age group for which it is - or isn't - appropriate. And these games are intended for adults, not kids. The Entertainment Software Association's data finds that the average video game player is age 35, and the average video game purchaser is 40 years old.

"If you go into your Wal Mart, the guns are not marketed at eye level to children," McKiernan says. "They are not promoted widely and broadly as something everyone should be heading over to the gun aisle to pick up... But the stores are not treating these games as adult products."

And the ESRB's voluntary regulations are not enough, he said. "Parents can punish their kids for drinking when they're 15, but we still have laws to keep alcohol out of kids hands to help the parents because they can't be everywhere at every time."

"Specifically with GTA, there is no legal ramification for selling this game to children," McKiernan said. "We ask that stores not promote it to the wider audience, to children, and that it be treated like any other adult product, like an adult magazine, that is kept behind counters and not at the sight line and within reach."

Dan Hewitt, the Entertainment Software Association's senior director of communications, said that the laws the Council hopes for have been found unconstitutional over and over again, at every instance.

Nonetheless, McKiernan is frustrated that the ESRB advocates a responsible use of its rating system without lobbying for adoption of these laws, and he feels industry groups like the Entertainment Software Association should be on the front lines of this battle. "It seems hypocritical, from our viewpoint," he said. "These rules should become law and that would increase the enforcement of them... voluntary things tend to meet with varying levels of success."

"An unconstitutional law that repeatedly gets thrown out by the courts is not an effective way to empower parents," said the association's Hewitt, who still feels the most effective regulatory methods involve a collaboration between parents and family advocacy groups to inform themselves, such as the efforts made through ongoing partnership between the Parent-Teacher Association and the ESRB.

"And it's setting up a parameter by which games are being treated differently than other First Amendment-protected material. Treating games differently than books, magazines and movies goes against the First Amendment. You can't codify the ratings system; you can't give it the rule of law, because then you're giving the power of government away to a private entity."

So according to Hewitt, information and communication is still the best way to protect kids from material inappropriate for their age level. "Really robust actions that drive the messages out there, that put tools and information into parents' hands are great ways to educate, empower and ensure that the games kids are playing are the right ones... the activities that we're talking about don't waste taxpayer money, don't waste state resources, and don't waste legislators' time," he said.

The widget hunts through the more than 14,000 games indexed at the ESRB and spits out the answer without ever leaving the site.

"Our single most important message to consumers, particularly to parents, is that they should always check a game's ESRB rating when considering a purchase or rental for their children," said ESRB president Patricia Vance. "Parents are hungry for this information, and research shows that three-quarters of parents regularly check ESRB ratings when making purchase or rental decisions about which games to bring home. Our ratings search widget makes checking the rating that much more convenient. We're very excited to be offering this widget with the help of Clearspring."

The widget can even be customized by visiting the ESRB site so you can try and match it to your site's colors. You can even enter color codes in Hex to match stranger site colors like, say, deep red and baby poo green.

NEW YORK, NY - The Entertainment Software Rating Board (ESRB) and Clearspring Technologies, a leading provider of widget syndication services, today announced the launch of a new ESRB ratings search widget that is available for free use and download by consumers. The widget allows users to search for ESRB ratings for more than 14,000 computer and video game titles in a portable application that can be placed directly onto their desktop, as well as imported onto their personal and social networking web pages. Several consumer and parenting websites also will begin offering the widget.

"Our single most important message to consumers, particularly to parents, is that they should always check a game's ESRB rating when considering a purchase or rental for their children," said ESRB president Patricia Vance. "Parents are hungry for this information, and research shows that three-quarters of parents regularly check ESRB ratings when making purchase or rental decisions about which games to bring home. Our ratings search widget makes checking the rating that much more convenient. We're very excited to be offering this widget with the help of Clearspring."

The ESRB ratings search widget, which is customizable by color, size and language (English, Spanish and French), can be grabbed using Clearspring's sharing menu. It can be easily embedded on blogs and social networking sites such as Facebook and MySpace or shared with friends via email. The widget can also be downloaded onto desktops using Microsoft Vista and Macs running OSX, as well as Windows XP machines using Yahoo! Widgets. Additionally, the widget is being made available on various web sites and widget galleries, including Google and Yahoo!, where users can grab and place the widget onto their personalized homepages.

"We're very pleased to be teaming up with ESRB to make this tool available to consumers," said Clearspring vice president of sales and client services, Steve Touhill. "The most successful widgets provide access to functionality that users genuinely need or want in an easy-to-use application. Offering a way to quickly get to ratings information for the video games they're considering buying has real value for consumers."
"Last year, the ratings search feature of our website was incredibly popular, with more than four million ratings searches having been conducted," added Vance. "There's clearly a huge appetite among consumers for ratings information, and providing this widget will make it that much easier for them to make informed purchase or rental decisions."

Since its inception in 1994, the ESRB ratings have become a trusted resource for parents when buying or renting computer and video games. The Federal Trade Commission (FTC) released a report last April which found that nine in ten parents of children who play video games are aware of the ESRB ratings, 87% expressed satisfaction, and nearly three- quarters use them regularly when choosing games for their children. ESRB ratings are also featured in the parental control settings of some of the latest game console hardware (i.e., Nintendo Wii, Xbox 360), and supported by all leading game retailers in the U.S. and Canada.

A complete list of ratings, content descriptors and their definitions can be found on the ESRB website at www.esrb.org .

ESA's New Head of State Government Relations Affairs Appointed

Washington, DC - March 26, 2008 - The Entertainment Software Association (ESA) today named Sally Jefferson as its new head of state government affairs. Jefferson's new title will be Vice President of State Government Affairs and, in this new capacity, she will advance the state and local government relations needs of companies publishing computer and video games.

"There are myriad challenges and opportunities - from constitutional concerns, tax incentive legislation, to the industry's work empowering parents with tools and information to protect children - facing the computer and video game industry on the state and local level," said Ed Desmond, senior vice president of Government Affairs for the ESA, the trade association representing U.S. computer and video game publishers. "Sally's experience, relationships, and insight are exactly what our members expect and deserve to ensure the industry is well-represented and active."

In addition to her new responsibilities, Jefferson will continue to manage ESA's relationships with national organizations representing state legislators and Governors.

"The computer and video game industry is well-served by Sally's professionalism and her high-level of knowledge and expertise," said Virginia Attorney General Bob McDonnell. "I'm confident that the ESA and its members will benefit from this recognition of her years of hard work."

A Kentucky native, Ms. Jefferson has 20 years of government affairs experience working at the ESA, the U.S. Chamber of Commerce, and as a legislative aide on Capitol Hill. During her tenure at the U.S. Chamber of Commerce in Washington DC, she was Executive Director of Congressional and Public Affairs and was its senior lobbyist primarily focused on transportation, energy and regulatory reform issues. She also was Executive Director of a chamber-led transportation coalition comprised of more than 300 national business, labor, state and local organizations.

"Sally is a very effective and dependable voice for the concerns of her industry," commented Senate Rules Committee Chairman and National Conference of State Legislatures Vice President Don Balfour of Georgia. "In dealing with state legislation, it can often be hard to navigate the personalities, politics, and issues that arise. Sally does so with great professionalism and ease."

"Sally is well-known in state and local politics for her reliable and consistent industry representation. With her wealth of experience, contacts and knowledge, I am sure the ESA's members and the computer and video game industry writ-large will be well-served by her advancement," said Nathan Daschle, executive director of the Democratic Governors Association.

Mexican Law Enforcement Raids Pirate Game Facilities in Mexico City ESA Applauds Protecting Legitimate Computer and Video Games Washington, DC - March 17, 2008 - The Entertainment Software Association (ESA) commended the Procuraduría General de la República (PGR) and the Agencia Federal de Investigacion (AFI) for their recent raids of four facilities involved in burning pirate copies of video games in the notorious Tepito area in Mexico City. Working with local representatives of the ESA, over 500 law enforcement officers raided the four pirate game duplication facilities and three other storage locations, seizing roughly 290 DVD/CD burners, 28,800 illegal copies of video games and more than 900,000 video game cover inserts. "Mexico is an important market for ESA members due to the enormous popularity of entertainment software," said Ric Hirsch, senior vice president for Intellectual Property Enforcement at the ESA, the trade association representing U.S. computer and video game publishers. "Unfortunately, Mexico also has an alarmingly high rate of game software piracy that by our estimates reaches 88%. We are very grateful for the efforts of PGR, its Specialized Unit on Investigation of Crimes Committed against Industrial Property and Copyrights (UEIDDAPI), the prosecutors that were assigned to this case, and AFI in attacking the sources of pirate video games circulating in Mexico City markets, as such enforcement actions are the best way to reduce high levels of game piracy." The Tepito market is one of the most popular shopping areas in Mexico City and is a local center of black market activity, including the manufacture and sale of pirated computer and video games. ESA and its local counsel have been investigating pirate game traffickers in Tepito for several months. The raids and seizures highlight the ready availability of pirated entertainment software product, making it extremely difficult for legitimate game retailers to earn a profit. The ESA is the U.S. association dedicated to serving the business and public affairs needs of the companies publishing interactive games for video game consoles, handheld devices, personal computers, and the Internet. ESA members collectively account for more than 90 percent of the $9.5 billion in entertainment software sales in the U.S. in 2007, and billions more in export sales of entertainment software. For more information about the ESA, please visit www.theESA.com.

Jeez, I feel like such a statistic. As a female who is permanently attached to her DS and spends way too many hours playing The Sims, I fit the profile they describe to a T (although accounting for all the DS-playing I do on the bus and Sim p