‘Hot Coffee’ Melee ‘Isolated Incident,’ THQ Says

Farrell said THQ and other publishers recently agreed to review code in their games to ensure the absence of hidden content. His comments came shortly after the Entertainment Software Rating Board (ESRB) sent a memo to publishers asking them to “submit any pertinent content shipped in final product even if it is not intended to ever be accessed during game play or remove it from the final disc” (CED Sept 15 p5). The ESRB move came after it found sexual content in the infamous “Hot Coffee” modification of San Andreas was hidden on the final discs of the game as released (CED July 21 p4). “I'm very supportive” of the ESRB effort, Farrell said.

The San Andreas melee comes as more state legislators propose to ban selling or renting violent and sexually explicit video and computer games to children. Interactive Entertainment Merchants Assn. (IEMA) Pres. Hal Halpin this week sent a letter to Cal. Gov. Arnold Schwarzenegger (R), asking him to veto Assembly Bill (AB) 1179 (CED Sept 13 p8). If the governor instead signs the measure, retailers selling or renting kids games showing “serious injury to human beings in a manner that is especially heinous, atrocious or cruel” would risk fines up to $1,000 for each violation. Such games also would have to be labeled as being for sale to adults only. Halpin’s letter called the law “unnecessary,” since retailers are “firmly committed to voluntarily enforcing and promoting the videogame rating system.” He also said “legislation cannot and will not replace the ultimate role and responsibility of parents in their duty to raise their children,” adding “federal courts have consistently recognized that videogames are constitutionally protected speech under the First Amendment.” Halpin said “the lack of decipherable standards” in the bill “is particularly troubling for those who would be forced to interpret” it. He said the law would “have a serious and harmful effect on California retailers and the thousands of individuals that they employ.”

Ill. Gov. Rod Blagojevich (D), also wrote Schwarzenegger, urging him to sign AB 1179. Blagojevich signed a similar bill, the Safe Games Illinois Act. As of Jan. 1, it will ban rental and sale of violent and sexually explicit videogames to children under 18. Retailers convicted of violating the ban face a fine of $1,000. Retailers who fail to properly label games and place proper signs will risk a $500 fine for each of the first 3 violations and a $1,000 fine thereafter.

THQ’s Farrell told the Merrill Lynch conference that his company plans a significant marketing campaign to support its upcoming game sequel Tak: The Great Juju Challenge. He said “one of the cornerstones of the marketing is a very significant fast food promotion” with McDonald’s, in which 8 toys will be available to customers “over the [game’s] launch window,” Sept. 30-Oct. 27 in N. America, Canada, the U.K., Australia and New Zealand. Farrell said McDonald’s store inside Wal-Mart stores will post signs saying the game can be bought in the discount store. He also said THQ is working on 7 next-generation game system titles.

Revenue from game rentals now represents only about 5% of THQ sales, Farrell said. Although Blockbuster and Hollywood Entertainment have been “good customers” of THQ, he said Wal-Mart, Target, Best Buy, Electronics Boutique, GameStop, Toys “R” Us and Kmart are the publisher’s largest customers.

“In several years, we'll see major consolidation of retail” in countries including Australia, France, Germany, Japan and Spain that will make those markets more like the U.S. and U.K. today, Farrell said.