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Q&A: Levine surfs BioShock's wake - Xbox 360 News at GameSpot:

GS: Given the uncertain nature of what the ESRB finds acceptable or not, is there a chilling effect on developers?

KL: (...) In terms of the chilling effect, I think it's understandable. I think there are business reasons why there are limitations on games. For instance, Microsoft and Sony won't approve AO-rated games. I think that's still because our industry is still somewhat perceived as an industry of youthful game players when in reality, demographically, we know that's not true at all. The vast majority of gamers are over 18.

I think that will change in time. It's weird that you go to Best Buy and you see R-rated films and PG-rated films, and then unrated films and TV shows with plenty of violence, but you can't even imagine an unrated video game. And I think that's because movies are sort of yesterday's news. The mainstream press is drawn to heat; they smell blood in the water and they want a story. And movies just aren't that much of a story anymore.

Remember back in the '50s, what happened to those with the comics code? The whole nature of comics changed. There was a whole list of things you could and couldn't do, and that had an impact on the industry for years and years.

I remember when Mortal Kombat came out, I remember when Death Race 2000 came out, this very old black-and-white arcade game where you'd run over stick figures with your car and they'd turn into crosses. That was the first video game outrage, and I was a kid when that happened. But the graphics blew up, and there's a new thing, and people think it's the end of the world. But you know what--it turns out not to be the end of the world.