Sources are telling us that Microsoft has opted to ditch Mature and Teen titles for the upcoming Microsoft Game Room. The decision means that the virtual arcade will only feature titles with an E (Everyone) or a E10+ (Everyone 10 or older) rating.

The decision has more to do with ESRB ratings and the cost to get every game rated. The vast majority of retro titles came out long before the ESRB started rating titles, so the majority of titles have never been rated. Instead, Microsoft is going with a strategy where the Game Room itself is rated E/E10+ and as a result, all titles within the Game Room will be titles that fall within those rating guidelines.

The decision has left many scratching their heads, as many of the more violent titles from the retro era will never see the light of day in the virtual arcade that is to be released both on Xbox 360 and Games for Windows. It will, however, help to keep prices low, as Microsoft does not have to seek ratings for all of the titles that will appear in the Game Room.

Still some think that Microsoft might still have to seek ratings in the end, as it is difficult to see how the company will be able to limit themselves to E/E10+ titles when none of these games have ever been rated. In any event, this is the current plan; and we will have to see how this works out for Microsoft.