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Time of India
22-05-2025
- Entertainment
- Time of India
Explained: What was the GTA 'Hot Coffee' controversy and how it cost Rockstar millions
The " Hot Coffee " controversy, which was caused by a hidden mini-game in Grand Theft Auto ( GTA ) San Andreas , cost Rockstar Games millions and significantly impacted the video game industry. This feature, which was not intended for player access due to its graphic nature, was discovered by modders in 2005. Originally an inaccessible element within the 2004 game, the "Hot Coffee" mod allowed players to unlock explicit sexual content after its release for the Microsoft Windows port of San Andreas. Modders later found ways to access this content on PlayStation 2 and Xbox versions as well. How GTA San Andreas 'Hot Coffee' controversy cost Rockstar millions The discovery led to widespread public and legal backlash. GTA San Andreas, initially rated "Mature," was re-rated "Adults Only" by the ESRB (Entertainment Software Rating Board), causing many retailers to pull the game from shelves. The Federal Trade Commission (FTC) also launched an investigation into Rockstar Games and its parent company, Take-Two Interactive , for allegedly misleading consumers about the game's content. Ultimately, Rockstar Games and Take-Two Interactive faced class-action lawsuits and settlements. Reports indicate the controversy cost Take-Two Interactive an estimated $20 million in legal fees and other expenses, in addition to the costs of reprinting and distributing a revised version of the game with the content removed. The incident also prompted the ESRB to implement stricter policies and potential fines for developers failing to disclose explicit content. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Your Finger Shape Says a Lot About Your Personality, Read Now Tips and Tricks Undo The 'Hot Coffee' mod for Grand Theft Auto: San Andreas became one of gaming's most notorious controversies because it unlocked a hidden, interactive sexual mini-game between the protagonist, Carl 'CJ' Johnson, and his girlfriend. By responding to on-screen button prompts, players could simulate CJ's intimate movements. The name derives from the girlfriend's invitation—'Do you want to come inside for some coffee?'—just before the scene. Initially, Rockstar Games claimed hackers had inserted the content post-release, stating, 'Hackers created the 'Hot Coffee' modification by disassembling and then combining, recompiling and altering the game's source code.' However, investigators soon demonstrated that the requisite code was already embedded in the retail version, contradicting Rockstar's defence. The uproar quickly drew scrutiny from activists and legislators, prompting a review of the ESRB, where they determined that San Andreas warranted an Adults Only (AO) rating—the first and only GTA title to receive such a designation. In response, Rockstar issued a sanitised re-release to restore the M rating. The scandal also spurred the Family Entertainment Protection Act—championed in part by Hillary Clinton—to strengthen enforcement of ESRB ratings. Despite—or perhaps because of—the uproar, 'Hot Coffee' inspired similar adult-oriented mods for other Rockstar titles. Most recently, a modder recreated a 'Hot Coffee'-style scene for Red Dead Redemption 2, stitching together existing in-game animations and audio without adding nudity. Rockstar reportedly demanded its removal, but the creator refused, arguing the mod only repurposed assets already in the game. Xbox and PlayStation Price Hikes Explained AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Business Mayor
20-05-2025
- Entertainment
- Business Mayor
The winners of the GamesBeat Summit 2025 Visionary and Up-and-Comer Awards
GamesBeat unveiled the winners of its eight annual Visionary Awards during the 2025 GamesBeat Summit event in Los Angeles. The Visionary Award winner is Entertainment Software Rating Board (ESRB) president Patricia Vance, and the Up-and-Comer winner is Strange Scaffold studio head Xalavier Nelson Jr. GamesBeat editorial director Dean Takahashi started the Visionary Awards in 2018 to recognize industry leaders who took a daring, visionary approach to shaping the future of gaming, forging new paths that have mesmerized audiences and redefined the very nature of video games. Two awards are given every year: the Visionary Award and the Up-and-Comer award. This year's ceremony was hosted by Andrea Rene, president of Shortie Media and former executive producer of What's Good Games. The winners were chosen by a panel of judges from all across the industry, including Xbox president Sarah Bond, Women-Led Games founder Charmaine Duff, and veteran developer John Smedley. Patricia Vance has helped steer the ESRB for over 20 years. At the ESRB, Patricia Vance leads the teams responsible for age and content ratings on video games and apps, and enforcing marketing guidelines that've been adopted by the whole industry. She's also a founding member of the International Age Rating Coalition (IARC), a non-profit organization that operates a global rating and age classification system for digital games and apps Zebra Partners co-founder Perrin Kaplan introduced Vance on stage, calling her a 'respected pioneer on game content ratings,' and a quiet leader who gets it done better than anyone else. Unlike a lot of award winners who tend to be in the public eye, Kaplan noted that Vance's work is largely behind the scenes, advocating for games and 'protecting our industry's right to govern itself.' In her acceptance speech, Vance said that over the last 45 years, she's had the privilege to work in some of the most dynamic and fast-changing industries, from the early days of cable TV to the explosion of interactive media. But her 'most meaningful chapter' has been her time at the ESRB, which she first joined over 20 years ago. 'When I joined [the ESRB] in 2002 there was one glaring vulnerability threatening the integrity of the video game industry: Kids could walk into a retail store and buy a mature-rated video game, no questions asked,' said Vance. 'So we got to work. We launched the ESRB Retail Council and convinced the biggest retailers to step up.' By 2009, the Federal Trade Commission recognized that the video game industry had the strongest selling regulatory code and the highest compliance with that code, outpacing even movies and music. Then a landmark moment came when the U.S. Supreme Court recognized that video games are a form of protected speech, with Vance saying it was a 'powerful validation of what self-regulation done right can achieve.' But she said the biggest challenge the ESRB has ever faced is the rise of mobile gaming and the explosion of digital publishing, and creating a rating process that could scale to meet the high volume of games while also 'enabling developers to access culturally relevant and compliant ratings in different regions around the world across every platform.' This led to the creation of IARC, and today the system is used by 13 storefronts across mobile, console, VR, and PC, with nine regional rating authorities on board. 'So why does all this matter? Because our work helps reduce risk for publishers, protects the industry from unnecessary regulation, and most importantly, by informing consumers upfront, it safeguards your freedom to create the games you want to make,' said Vance. She noted how the ESRB operates quietly in the background of the industry, which is how it should be. It's thankless work most of the time, and she's often felt invisible at gaming conferences and events. 'So I can't tell you how much it means to be recognized today. I accept this award on behalf of my extraordinary team back in New York, who are as passionate about this industry as I am, and who are absolutely relentless in their commitment to our mission,' said Vance. 'And last but definitely not least, we could not do our work without the staunch and ongoing support of the [Entertainment Software Association] and the many industry leaders who serve on our board of directors.' Xalavier is the 2025 winner of the Up-and-Comer award. Xalavier Nelson Jr. is a renowned and prolific indie developer who's worked on over 90 games in the last eight years, with 15 of them coming from his own studio, Strange Scaffold. Unfortunately, he couldn't attend GamesBeat Summit in person to accept his Up-and-Comer award. In a video, Cyan Worlds development director Hannah Gamiel introduced Xalavier, saying that she has yet to meet another developer who makes games with the same level of 'unbridled creativity' that he does. 'To say his perspective on making games is refreshing is an understatement. This quality of his shines in every single game he makes. Xalavier is somehow wonderfully able to carefully harness meaning within a facade of incredibly absurd settings,' said Gamiel. In his acceptance video, Nelson Jr. thanked everyone he's ever worked with at Strange Scaffold and throughout his career, and that without them he wouldn't be here. He joked that receiving this award was existentially dread-inducing. '[This award] is for people whose greatest achievements lie ahead of them. I can think of at least three times in the last few years alone where I went, 'Oh, I don't know if I'll be able to make games anymore,'' said Nelson Jr. Read More Lotte Group taps Arbitrum for Web3 entertainment experiences He urged the audience to keep supporting and showing up for one another, especially in light of the layoffs that've plagued the industry over the past few years. 'That's why, if I can urge for anything from the audience, it is to look at the people around you because systemic issues in this medium — lack of funding, lack of job security — means that the person who's right next to you, no matter what they've achieved, no matter what their talents are, no matter how hard they work and how much you assume they're going to be fine… If they are showing up on your doorstep, if they are here with you right now, you are that person who will make them fine. 'You are that person who needs to show up for them, because otherwise we can't guarantee that they are here tomorrow, that they contribute to the future of our medium and what we can be,' said Nelson Jr.
Bloomberg
20-02-2025
- Business
- Bloomberg
February Global Regulatory Brief: Risk, capital and financial stability
ESRB publishes report on a monitoring framework for systemic liquidity risks in financial system The European Systemic Risk Board (ESRB) has published a comprehensive report on liquidity risk that provides a detailed framework for monitoring systemic liquidity risks in the financial system, focusing on both funding liquidity and market liquidity. In more detail: The report emphasizes the importance of understanding and measuring risks to systemic liquidity by paying attention to financial system entities beyond banks and key asset classes beyond sovereign bonds. It outlines the following key components: Conceptual Considerations: The report defines systemic liquidity risk and its essential dimensions, including funding liquidity risk and market liquidity risk. It also discusses the interactions between these dimensions and the potential for contagion and amplification of liquidity stress. Monitoring Framework: The framework identifies key entities and markets that should be systematically monitored for emerging liquidity risks. It presents indicators for funding liquidity risk, market liquidity risk, and contagion and amplification risks. The framework includes composite indicators that capture the main dimensions of systemic liquidity risks. Country Applications: The report provides examples of how the framework can be applied to specific countries, such as the Netherlands and Finland. These applications highlight the importance of considering country-specific features and financial structures when assessing systemic liquidity risks. Case Studies: The report includes case studies that illustrate the application of the framework to real-world scenarios, such as the COVID-19 pandemic and the liquidity stress faced by GBP funds following liability-driven investment strategies in September 2022. Main lesson: The report underscores the need for a macroprudential approach to monitoring systemic liquidity, complementing ongoing micro-prudential initiatives to increase resilience at the level of individual entities, markets, and activities. It also highlights the importance of using a comprehensive set of indicators to capture the various dimensions of liquidity risk and the interactions between them. Significance: The monitoring framework can be applied in all EU jurisdictions and enriched by adding further dimensions in the future. It can also inform the design of early warning indicators for systemic liquidity risk and the development of systemic liquidity stress tests. APRA highlights the need for improved valuation and liquidity risk governance in superannuation The Australian Prudential Regulation Authority (APRA) has released findings from its review of superannuation trustees' valuation governance and liquidity risk management practices. Summary: Conducted in December 2023, the review covered 23 trustees managing 80% of APRA-regulated assets, totaling $2.7 trillion, with $500 billion in unlisted assets. While progress has been made since 2021, 12 trustees showed significant gaps in areas like board oversight, conflict management, revaluation processes, and liquidity planning. In More Detail: APRA expects trustees to address deficiencies promptly and align with Prudential Standard SPS 530 Investment Governance (SPS 530), warning of further regulatory action if necessary. Key findings include: SPS 530: A significant proportion of trustees still displayed material gaps in key areas, including the need for material improvements in either or both their valuation governance or liquidity risk management frameworks to meet the requirements of SPS 530. Unlisted asset valuation governance: There was particular weakness across board oversight and conflict of interest management, revaluation frequency and triggers, valuation control, and fair value reporting. Liquidity risk management: There was particular weakness in liquidity stress trigger frameworks, unlisted asset liquidity risks and liquidity action plans. What this means for trustees: APRA has said that these findings are 'concerning and highlight the need to further lift practices across the industry'. APRA will engage directly with those trustees identified as having deficiencies and will expect them to formulate appropriate and timely remediation plans. APRA expects all trustees to review the findings, assess themselves against SPS 530, and, if needed, enhance their valuation governance and liquidity risk frameworks. APRA has noted that where necessary, it will take further action to enforce SPS 530 and related requirements. FSB publish impact report on reforms to securitization markets The Financial Stability Board (FSB) has published the final report on the impact of the G20 Financial Regulatory Reforms on Securitization, particularly the IOSCO minimum retention recommendations and the Basel revisions to prudential requirements. In summary: The evaluation finds that these reforms, introduced in the aftermath of the 2008 global financial crisis, have contributed to the resilience of the securitization market without strong evidence of material negative side-effects on financing to the economy. Complex structures that contributed to the GFC – including securitizations of subprime assets, collateralized debt obligations and re-securitizations – have declined significantly, while the securitization market is more transparent. However, the market has not yet been tested through a full credit cycle to fully confirm the evidence on enhanced resilience, particularly in the case of collateralized loan obligations (CLOs) that have seen significant growth in recent years but have not yet experienced a prolonged downturn. Non-bank growth: The reforms appear to have contributed to a redistribution of risk from banks to the non-bank financial intermediation (NBFI) sector, with banks shifting towards higher-rated tranches. This redistribution of risk has been driven both by an increase in non-bank financing of the economy and by the growth of non-bank investors in securitizations. Key regulatory issues: The report highlights key issues for national authorities and international bodies to consider: The need to monitor risks in securitization markets in light of developments such as the growth of synthetic risk transfers and private credit in securitization structures; The effectiveness of risk retention requirements for risk alignment in CLOs, given the fact that a large part of the global CLO market does not currently operate under such requirements and given the use of third-party risk financing for CLO structures; and
