Children and Video Game Developers, 2006

Shareholders Resolutions issue for Violence in Our World

2006 Shareholder Resolution approved by the Advisory Committee on Corporate Social Responsibility (ACCSR)

WHEREAS:

A statement to Congress by the American Medical Association, the American Academy of Pediatrics, and other organizations expressed the consensus of the public health community with respect to the impact of entertainment violence on children: "Children exposed to violent programming at a young age have a higher tendency for violent and aggressive behavior later in life than children who are not so exposed." (Joint Statement on the Impact of Entertainment Violence on Children, Congressional Public Health Summit, July 2000);

"The overwhelming trend in the research to date indicates that there are three major effects of exposure to violence in media: increased aggression and violent behavior; the 'mean world' syndrome, the concept that media inflates the prevalence of violence in the world and makes kids afraid; and desensitization towards violence." (Dr. Michael Rich, American Academy of Pediatrics, presentation at Federal Trade Commission workshop on Marketing Violent Entertainment to Children, October 2003);

“Comprehensive analysis of violent interactive video game research suggests such exposure a) increases aggressive behavior; b) increases aggressive thoughts; c) increases angry feelings; d) decreases helpful behavior; and e) increases physiological arousal” (American Psychological Association Resolution on Violence in Video Games and Interactive Media, 2005)

The Entertainment Software Rating Board has developed a rating system for video games that includes a rating symbol for age-appropriateness (e.g., “AO” for adults only, “M” or “Mature” for 17 and older, “T” or “Teen” for 13 and older), and content descriptors that describe elements in a game;

Companies who do not comply with ESRB guidelines are subject to a wide range of ESRB sanctions, including fines, corrective actions and other penalties.

Shareholders have a financial interest in this issue. New York City pension funds filed suit against video-game maker Take Two Interactive, claiming they lost $3.2 million in share value due to the backlash over the discovery of a hidden sequence in Take Two's "Grand Theft Auto: San Andreas" game.

RESOLVED: Shareholders request that the Board of Directors report to shareholders on the steps the company has taken to ensure that children under 17 do not have access to Mature-rated video games that are published by this company. This report shall be available within six (6) months following the 2007 annual meeting, and will be developed at reasonable costs and omit proprietary information.