The National Institute on Media and the Family (NIMF) has released its 12th annual MediaWise video game report card, which the non-profit organization says "provides a snapshot of the interactive gaming industry with a focus on issues related to the welfare of children and teens."

This year's report praises retailers like GameStop for clamping down on sales of Mature games to minors and even firing employees who violate the policy, as well as Target, which pulled Manhunt 2 following the news that a hack could reveal some AO-rated content. Microsoft's efforts with parental controls and the family timer were also highlighted.

Despite this, NIMF's Dr. David Walsh says there is an "ominous backslide on multiple fronts." He then proceeded to blast the voluntary ratings enforcement system and the "complacency" of both parents and retailers.

"...our findings suggest that the unacceptable negative impact of excessively violent video games on young people is a problem depicted in an everexpanding body of research. Increasingly, the companies which create and market the games, the retailers who sell them and the parents who buy them have become too comfortable with the voluntary standards they set for themselves in previous years," he says. "Complacency, especially on the part of retailers and parents, appears to have caused a backslide in ratings awareness and enforcement. And, at the same time, while the Entertainment Software Rating Board (ESRB) has continued to educate the public about its video game rating system, several shocking incidents have inadvertently revealed dangerous loopholes in the ratings process. Simply put, some of the hard-won progress seen in previous years has been lost, and now, too many children are spending too much time playing inappropriate video games that can harm their health and development."

The grades on the report card itself were broken down as follows:

"Assessing the performance of the gaming industry this year is a difficult task with so many highlights and lowlights to examine," the report reads. "Console manufacturers, for the most part, seem to understand the importance of making games safe for kids. Microsoft included a timer feature that allows parents to limit their children's video game playing time, a praiseworthy innovation. On the other hand, Nintendo Wii offered a blood-spattered special edition with a Manhunt 2 promotion. Some software makers made great games that pushed the edge of the envelope in creativity and storytelling. Others, once again, dredged the well of poor taste, with titles like Rockstar's Manhunt 2 and Eidos Interactive's Kane & Lynch: Dead Men. Some game makers also found creative new ways to market adult games on kids, a disgustingly familiar practice over the years. Too few game makers disclose when illegal versions of their games are stolen from their facilities and leaked on the Internet."

Dr. Walsh and NIMF also made a list of recommendations for the industry calling for, among other things, a "universal" ratings system. Here are the recommendations:

There's much more in the full report, including a parents buyer's guide and further research. You can download the report in pdf format here.