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AB test analysis showing the effects of government regulations on video game sales.

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Does the Implementation of Video Games Ratings Impact their Sales?

Background

Background: "Since the late 1990s, some acts of violence have been highly publicized in relation to beliefs the suspect in the crime may have had a history of playing violent video games. Some research proposes violent video game use correlates with a temporary increase in aggression and a decrease in prosocial behavior (caring about the welfare and rights of others), but these results have not been reproduced.[5][6][7] Others theorise positive effects of playing video games including prosocial behavior in some contexts[8][9] and argue that the video game industry has served as a scapegoat for more generalised problems affecting some communities." ~ Wikipedia (https://en.wikipedia.org/wiki/Video_game_controversies)

Hypotheses for negative effect of video games: "Theories of negative effects of video games tend to focus on the potential for players to model behaviors witnessed in the game which may be exacerbated due to the interactive nature of these games. The most well known theory of such effects is the General Aggression Model (GAM) which proposes that playing violent video games may create cognitive scripts of aggression which will be activated in incidents in which individuals think others are acting with hostility.[13] Playing violent video games, thus, becomes an opportunity to rehearse acts of aggression, which then become more common in real life. The general aggression model suggests the simulated violence of video games may influence a player's thoughts, feelings and physical arousal and this in turn creates a short-term (and possibly a long-term) effect on an individual's interpretation of an aggressive or violent act.[14] The GAM has been controversial, however, with some scholars criticizing it on the basis of a number of problematic assumptions, such as that aggression is primarily learned, that the brain does not distinguish reality from fiction, etc.[15] Some recent studies have explicitly claimed to find evidence against the GAM.[16][17][18]

Some biological theories of aggression have specifically excluded video game and other media effects because the evidence for such effects is considered weak and the impact too distant. For example, the catalyst model of aggression comes from a diathesis-stress perspective, implying that aggression is due to a combination of genetic risk and environmental strain. The catalyst model suggests that stress, coupled with antisocial personality are salient factors leading to aggression. It does allow that proximal influences such as family or peers may alter aggressiveness but not media and games.[19][20]" ~ Wikipedia (https://en.wikipedia.org/wiki/Video_game_controversies)

The Problem:

"Due to the General Aggression Model (GAM), a theory in the hypotheses of negative effect from video games, caused fear among regulators that 'acts of aggression [are becoming] more common in real life'."


The Potential Solution:

"Adding a rating system to games will decrease video game sales for the 3 locations by creating barriers of entry, making it more difficult for the consumers that are not old enough to purchase video games that is not recommended for them."

Rating Agencies:

Regulations in USA: "The Entertainment Software Rating Board (ESRB) is a self-regulatory organization that assigns age and content ratings, enforces industry-adopted advertising guidelines, and ensures responsible online privacy principles for computer and video games in the United States, Canada, and Mexico. The ESRB was established in 1994 by the Entertainment Software Association (formerly the Interactive Digital Software Association), in response to criticism of controversial video games with excessively violent or sexual content." ~ Wikipedia (https://en.wikipedia.org/wiki/Entertainment_Software_Rating_Board)

Regulations in Europe: "Pan European Game Information (PEGI, IPA: /pɛɡi/ or "Peggy") is a European video game content rating system established to help European consumers make informed decisions when buying video games or apps through the use of age recommendations and content descriptors. It was developed by the Interactive Software Federation of Europe (ISFE) and came into use in April 2003; it replaced many national age rating systems with a single European system. The PEGI system is now used in more than thirty countries and is based on a code of conduct, a set of rules to which every publisher using the PEGI system is contractually committed. PEGI self-regulation is composed by five age categories and eight content descriptors that advise the suitability and content of a game for a certain age range based on the games content.[1] The age rating is not intended to indicate the difficulty of the game or the skill required to play it.[2]." ~ Wikipedia (https://en.wikipedia.org/wiki/Pan_European_Game_Information)

Regulations in Japan: "The Computer Entertainment Rating Organization (特定非営利活動法人コンピュータエンターテインメントレーティング機構 Tokutei Hieiri Katsudō Hōjin Konpyūta Entāteinmento Rētingu Kikō) (CERO) is a Japanese entertainment rating organization based in Tokyo that rates video game content in console games with levels of rating that informs the customer of the nature of the product and for what age group it is suitable. It was established in July 2002 as a branch of Computer Entertainment Supplier's Association, and became an officially recognized nonprofit organization in 2003. Personal computer games (including dating sims, dōjin soft, eroge, and visual novels) are rated by a different organization, the Ethics Organization of Computer Software (EOCS)." ~ Wikipedia (https://en.wikipedia.org/wiki/Computer_Entertainment_Rating_Organization)

Video Game Ratings:

(Example, derived from the United States Rating Organization ESRB)

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EC (EARLY CHILDHOOD) : Content is intended for young children.

E (gamesEVERYONE) : Content is generally suitable for all ages. May contain minimal cartoon, fantasy or mild violence and/or infrequent use of mild language.

E10+ (gamesEVERYONE 10+) : Content is generally suitable for ages 10 and up. May contain more cartoon, fantasy or mild violence, mild language and/or minimal suggestive themes.

T (gamesTEEN) : Content is generally suitable for ages 13 and up. May contain violence, suggestive themes, crude humor, minimal blood, simulated gambling and/or infrequent use of strong language.

M (gamesMATURE) : Content is generally suitable for ages 17 and up. May contain intense violence, blood and gore, sexual content and/or strong language.

AO (gamesADULTS ONLY) : Content suitable only for adults ages 18 and up. May include prolonged scenes of intense violence, graphic sexual content and/or gambling with real currency.

RP (RATING PENDING) : Not yet assigned a final ESRB rating. Appears only in advertising, marketing and promotional materials related to a physical (boxed) video game that is expected to carry an ESRB rating, and should be replaced by a game's rating once it has been assigned.

Question:

"Will the creation of a rating system be effective in decreasing overall sales of video games for the 3 locations?"

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