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I'd be fine with introducing something else between M and AO, but my primary point has always been that the most restrictive rating will always be radioactive and that few retailers will touch it.

There's just no way to make AO into a 'real' rating. As soon as Walmart carries a 'legitimate' AO game, it would be pointed out that they have no problem with murder and rape simulators. This is exactly what they're trying to avoid by not carrying AO games at all. You need a way for stores to make clear that they're not carrying the worst games. Even the PEGI system that bdbdbd describes does this - the worst offenders are banned by the government. It's a necessary safety valve, and the market demands it. I'd much rather it be done via voluntary action than by government intervention.