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(July 20, 2005)

In the wake of the recent Hot Coffee controversy surrounding the PC edition of Grand Theft Auto San Andreas, where a mod could be used to access sexually explicit content within the game, the ESRB has chosen to change the game's rating.  Previously, GTA: SA was rated M (Mature) which meant that the game was suitable for people ages 17 and up, and those under that age would have to get an adult to buy the game for them.  Now, the game will be rated AO (Adult Only), which will mean that only those 18 years of age and older will be able to buy it.

As a result of this change in ratings, the ESRB has advised all retailers to remove any copies of Grand Theft Auto San Andreas from store shelves.  Also, Take Two, the game's publisher, will have to cease production of the title under it's current SKU, ensuring to ship 

future copies of the game with the new AO rating, as well as releasing a patch to combat the Hot Coffee mod.

Taking things a step further, Take Two have stated that they will ship all future games with the hidden sexual content removed from San Andreas, thereby allowing these new versions of the game to maintain an M rating.  The publisher has also requested that retailers not return games after removing them from the shelves, instead asking them to wait for Take Two to send stickers with the new AO rating which can be placed on copies of GTA: San Andreas already in circulation.

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Due to these recent developments, Take Two has reduced their financial outlook for the quarter ending July 31, 2005 where the new guidance will be $160 to $170 million in net sales, with a net loss per share of 40 to 45 cents.  For the fiscal year ending October 31, 2005, guidance is now set at $1.26 to $1.31 billion in net sales with diluted earnings per share at $1.06 to $1.12.

The Interactive Entertainment Merchants Association (IEMA) also released a statement on the ESRB's decisions saying:

“The ESRB (Entertainment Software Ratings Board) notified us late this afternoon Eastern Time that they have revoked the “Mature” rating previously issued for Grand Theft Auto: San Andreas, following an extensive investigation. Our members intend to immediately cease all sales of the game until existing inventory can either be re-stickered with an AO (Adults Only) rating, or exchanged for new versions of the game that has the hidden content removed and the original M (Mature 17+) rating intact. Though not a policy, IEMA members generally do not carry AO-rated games any differently than we do not carry X-rated videos or DVDs, thus it is likely that our members will be removing all copies of the current version and re-stocking with the updated version.”