video games with ao rating

What do you think about the AO ratings for video games?

I read that recently that Manhunt 2 has been given the AO rating (Adults only) for the US, and it has also been banned from the UK. Because of this, it has been Nintendo & Sony’s policy to not produce these games and most retail chains will not carry them. Do you agree with this policy, or do you think it needs to be changed?
Here’s a link to a news article relating to this for those not familiar.

http://megagames.com/news/html/console/manhunt2usaratingrevealedao.shtml

I always thought that AO would only be used for games with blatant sex in them, and think that is how it should be.

I have a feeling that Manhunt 2 will be toned down just enough to be rated M.

Call of Duty Modern Warfare 2 PC Gameplay HD 4870 X2 – Icy hell