The videogame industry is locked in a battle with state and local lawmakers around the country who want to rein in access to what they see as increasingly violent and sexually explicit games.

At issue are the content ratings attached to videogames, and the steps retailers take (or don't take) to make sure some games -- like Grand Theft Auto: San Andreas, which included hidden nude scenes -- aren't sold to young players. Critics of the industry say that even though major retailers like Wal-Mart and Best Buy have voluntarily adopted policies to restrict sales of such games, enforcement can be lax. Several states want to impose fines on underage sales. What's more, some argue the ratings system needs to be overhauled because ratings are determined by a group created and funded by the game industry itself.

The videogame industry, meanwhile, is fighting back on two fronts. Last month, an industry trade group launched an initiative in cooperation with major retailers and three senators aimed at tightening sales policies for games. Less publicly, the group continues to aggressively challenge local legislative efforts in the courts, and has had success in getting some state laws overturned.

Read more