August 16, 2007
Recently GamePolitics and other sites reported on the sentencing of former Take Two CEO Ryan Brant in relation to massive stock option fraud.This morning, CNN/Money reports that Take Two has received a Wells notice from the Securities and Exchange Commission (SEC) in relation to its past stock option practices:
The SEC staff informed the maker of the "Grand Theft Auto" video games that it intends to seek authority... to file charges in connection with its investigation and may also seek a civil monetary penalty.
The video game company said it will continue to cooperate with the SEC and expects to resolve the investigation by a settlement rather than litigation.
A Wells notice gives a company a final chance to convince the SEC to not file charges.
Take Two stock (TTWO) closed at 12.60 yesterday, off nearly 50% from its March high of 24.80.
Comments
John B. Thompson, Attorney at Law
1172 S. Dixie Hwy., Suite 111
Coral Gables, Florida 33146
August 19, 2007
The Honorable Deborah Platt Majoras, Chairman
Federal Trade Commission
600 Pennsylvania Avenue, N.W.,
Washington, D.C. 20580 Via Fax and e-mails
Re: Television Ad for Mature-Rated Video Game on Program with Huge Teen Audience
Dear Chairman Majoras:
Take-Two Interactive Software, Inc., the maker of the hyper-violent Grand Theft Auto games and whose Manhunt 2 has been banned worldwide for sale not only by governments but by Sony and Nintendo as well, is aggressively marketing its newest Mature-rated video game to kids under 17 years of age. This predatory corporate practice was supposed to stop in the wake of “Columbine” and industry promises made to parents.
On this Friday’s night’s 8 pm Eastern time airing of WWE’s wrestling program “Smackdown,” there were repeated ads for Take-Two/Rockstar Game’s Mature-rated, incredibly violent BioShock set to be released on August 21.
A check of the demographics of the audience of that program reveals that teens under 17 years of age watch that program in huge numbers. The live audience in the arena containing thousands of pre-17 teens. That is precisely why Take-Two’s new chairman, Strauss Zelnick, who was recently called by Fox News’ Neil Cavuto a “marketing genius” is outlandishly marketing BioShock to kids.
The FTC has continued to express concerns about the continued marketing of Mature-rated video games to children, especially by Take-Two, as indicated by the FTC’s news release found at http://www.ftc.gov/opa/2006/06/videogames.shtm.
If there is any doubt as to the inappropriateness of BioShock for kids under 17 and thus the harmfulness of tv ads pitching it to them, you can see the content of the game for yourself at Take-Two’s site at http://www.2kgames.com/bioshock/bioshock.html. Video game enthusiast, web-based sites are thrilled with how violent the game is.
Remarkably, the video game industry is running ads for games like BioShock on teen-intensive television programs while at the same time its industry-captured “watchdog,” the ESRB, is running a self-congratulatory ad campaign to assure parents that the video game ratings system is working and that the industry can be trusted not to target their kids with these Mature-rated games. It is all a lie, as the BioShock ads prove.
This mendacious sleight of hand helps explain recent FTC findings that roughly 40% of the time kids under 17 can still buy Mature-rated games at major retailers with no parent in sight. The industry aggressively creates in kids a high demand for “Mature” games and then tells Congress and anyone else who will listen that they are doing “all we can to keep Mature games out of the hands of kids.”
This rampant fraudulent trade practice is precisely what “Big Tobacco” did with its “Joe Camel” and other teen-targeting ads, while at the same time lying to Congress that it was not marketing its adult product to kids.
Enough already. The Federal Trade Commission must act, finally, to stop the video game industry from routinely marketing Mature-rated video games to kids under 17, just as Take-Two is presently doing with BioShock.
Regards, Jack Thompson
Copies: Media
Governor Mitt Romney
Senator Hillary Clinton
You DO realize that Bioshock was created by Irrational Games, right?
It might be a small error to you, but I think it goes a long way in showing that you don't truly know what you're talking about. It shows that you don't even do any research before you start harping on like the soccer mom superhero you are.
Either way your efforts are going to fail, WWE's fanbase, while having a considerable underage portion, is the strongest in the 20-40 ranges. So they can legitimately make the claim that they were the audience targeted by the ad campaign.
But you keep on chuggin' little guy, I'm sure somebody will care, someday.