Take Two Announce Federal Trade Comission Inquiry

[Chris]

Take Two have just issued the following press release. I won't bother picking out the main quotes as it's easier if you read the entire thing.

New York, NY - July 26, 2005 - Take-Two Interactive Software, Inc. (NASDAQ: TTWO) announced today that it has been notified that the staff of the Federal Trade Commission's (FTC) Division of Advertising Practices is conducting an inquiry into advertising claims made for Grand Theft Auto: San Andreas. The Company intends to fully cooperate with the FTC inquiry, and believes that it acted in accordance with all applicable laws and regulations. The Company cooperated with a recently concluded Entertainment Software Rating Board (ESRB) investigation into this matter and has taken decisive and immediate corrective action.

Grand Theft Auto: San Andreas, as originally marketed and sold, was intended for mature audiences - those 17 and older - and was labeled with five ESRB content descriptors: blood and gore, intense violence, strong language, strong sexual content and use of drugs. The title's M rating combined with the content descriptors reflected the game's mature themes. After it was widely reported that a third party modification could alter the retail version of the game on all platforms, the ESRB re-rated the title from "Mature 17+" (M) to "Adults Only 18+" (AO).

Rockstar Games and Take Two Interactive regret that consumers may have been exposed to content that was not intended to be accessible in the playable version of Grand Theft Auto: San Andreas. The Company has taken significant steps to remedy this situation, including halting production of the current version of Grand Theft Auto: San Andreas, and has begun working on a version of the game that will not contain the elements used to enable the "hot coffee" modification. Going forward, the Company will refine the process by which it edits games and will enhance the protection of its game code to prevent such future modifications.

Take-Two Interactive recognizes and takes seriously its responsibility to ensure that its games are rated and marketed appropriately. The Company will continue to support and promote the ESRB rating system to help keep mature-themed video game content out of the hands of children.

Link to PR: Take Two Press Release