It's one of those stories that causes a cringe from anyone who follows the video game industry. From last years Grand Theft Auto "Hot Coffee," we have a current situation with Bethesda's Elder Scrolls IV: Oblivion, which has been hacked to expose female nudity and will be given a stricter rating. Nudity in games is becoming far too hot of an issue, though this current concern is different. There isn't a single source of blame here, and the reactions from those parties have caused this story to spin in directions it shouldn't be spinning.
The brief overview concerns a mod for the PC version of the game Elder Scrolls IV: Oblivion. Like the situation last year, nudity was uncovered by a determined hacker and released for players of the PC version only. This happened only a few weeks after the game was released. Nothing happened until yesterday when the ESRB announced the game was being re-rated "M" for 17+ instead of "T" for 13+.
Following that announcement, press releases flew out into the media. The ESRB supplied the gaming community with this as a reason for the re-rating:
… more detailed depictions of blood and gore than were considered in the original rating, as well as the presence of a locked-out art file or 'skin' that, if accessed through a third party modification to the PC version of the game, allows the user to play with topless versions of female characters.
Simply put, the ESRB is against a wall. They could have kept this quiet since certain anti-game politicians weren't calling out the nudity mod. If word made it out that it was re-rated without public knowledge, they have a major problem on their hands. On the other hand, by putting this out there, politicians like Leland Yee have already damned the ESRB for their actions, and will use this to further their own cause.
There is another side to this though, and that's the "T" rating the game was slapped with in the first place. Anyone who has played through this top-seller should know that Oblivion in NO WAY should have received anything less than a "M." It's graphic gore, implied dismemberment, and heavy violence should have never made its way past the ESRB or into a game rated "T."