Sunday, July 12, 2009

Money & Business

Risky Business by Matt Bandyk

Video Game Regulation On The Way?

January 14, 2009 09:55 AM ET | Matthew Bandyk | Permanent Link | Print

The video game industry has brushed off the recession. But can it escape the wrath of Washington (and state capitols) unscathed?

Michael Thompson at Ars Technica reports on the latest attempts to crack down on video games. Most notably, Congressman Joe Baca of California has introduced the Video Game Health Labeling Act of 2009, which would treat games the way the Surgeon General treats cigarettes. Any game with a Teen or higher rating gets a warning label slapped onto it: "WARNING: Excessive exposure to violent video games and other violent media has been linked to aggressive behavior."

Thompson notes, however, that pretty much all past attempts to regulate video games have been struck down as unconstitutional. But those attempts seem to be quite different than Baca's bill. They were state-level bills that sought to directly limit the sale of video games. This bill is federal legislation and is more akin to "soft paternalism"--we won't actually stop you from buying the game, but we'll sure as heck make you feel guilty about doing so. Whatever the effect, it can't be good news for one of the most productive entrepreneurial sectors of the economy (the video game industry is set to surpass movies and music in size in a few years.)

Much like the Internet, video games are part of a last frontier (some would say Wild West) of loose regulation. Sure, there are the ESRB ratings, but they seem far less important to the video game industry than the motion picture ratings. But also like the Internet, there is extraordinary pressure for more restrictions to be imposed for the sake of "the children."

How long will courts keep striking down these restrictions? If warning labels on cigarettes and other products have been upheld, what's stopping the same happening to video games?

Tags: small business

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Reader Comments

it seems to me that people are now getting jealous of the so "recession proof industry" i suspect that because every other industry is suffering from the recession and cutting thousands of jobs now they wanna force this onto the video game industry because they cant handle the competition.

more bs

Whats next movies...what about all the rap videos and things like that...they show aggressive content as well but there is no reulation with that

Way to go

You've got to be kidding me. Start labeling games like surgeon general warnings on cigarettes. Shouldn't it be the parents responsibility of the parents to purchase the game and limit the amount of playtime their kid gets on the game.

Imagine had this not been reported and swept under the rug and passed. I appreciate what that it got brought to our attention.

I guess his district in Califona is not going through these tough economic times the rest of the state is. This must be what the people in his district want.

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About Risky Business

Matt Bandyk, a reporter for U.S. News, explores capitalism from where it all begins, with the entrepreneur, whose risk taking and experimentation provide the roots from which the rest of the economy grows. As much courage as it takes to create one's own business, even the entrepreneur needs some help, and this blog will look at news, trends, and practical advice for starting and running a small business.

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