Wikipedia article:
The possibility of enabling the minigame by changing a single bit of code shows that the sexual intercourse content is part of the game's original data, and not new content inserted into the game by the mod. However, it is not possible to access the sexual content simply by playing the game as intended by the developers, because it was fully disabled and the bit cannot be changed by normal gameplay. The fellatio animations are however clearly visible in the background of an early mission, "Cleaning the Hood", even in the re-released game. This may explain why the mini-game was not simply removed when the decision was made to cut it from the game: its assets were in use elsewhere.

Spoiler: If it appears that I'm taking both sides on this issue, I probably am.

I love several E-rated games (just about anything involving Nintendo's mascot, Mario), but I also love M-rated games (such as GTA, Resident Evil, Silent Hill, etc.). The hidden Hot Coffee minigame in GTA: SA doesn't bother me at all, nor would it, had it been openly available during normal game play. My PS2 version is the original, unmodified version, but I've never been interested enough to unlock it. There's already enough wild content in the game, and a sex scene seems tame by comparison.

I don't see how a 17-year-old (as opposed to an 18-year-old) would be adversely affected by the extra content (those under 17 aren't supposed to have any version of the game), but we have to draw the line somewhere, and I agree with Janelane's implication that Rockstar should've taken the trouble to completely remove the questionable code before the initial release, assuming that they wanted the "M" rating instead of the "AO" rating. The publishers are cognizant of our social environment (silly or not), and they're familiar with the current rating system (accurate or not), so they should've expected the controversy once word got out. Of course, that could've been their goal all along. Sometimes, controversy makes for great marketing.

On the other hand, I agree with Dagmar, in that this was made out to be a much bigger deal than it really was, and some "asshat lawyers" and the socially repressive, sexually frustrated groups they represent, were using this situation to attack mature video games in general and get feathers in their caps. Intentional or not, Rockstar made a mistake, but it was a minor mistake. It's not as though they released Bible Black with an "E" rating.

Decius wrote:
I don't understand why this is more offensive than the rest of the game.

Exactly. The normal M-rated (17+) GTA games allow a player to illegally solicit a hooker, have sex in a stolen car (the sex isn't actually shown, but implied by the motion of the parked car), and then beat the hooker to death with a baseball bat and take all of her money, usually without any consequences. Vehicles can be stolen; buildings can be vandalized; and innocent citizens and police officers on the street can be run down, beaten, shot, set on fire, and/or killed by explosions. A player can take the main character to a building's rooftop with a sniper rifle and murder innocent citizens from a distance, watching their heads explode through the rifle's scope. Police helicopters can be shot down with rocket launchers, and military tanks can be stolen and used to destroy just about anything in sight. When the local police, FBI, and even the army finally come after you, all you have to do is drive your car into a paint shop, and you're in the clear.

Apparently, that's all O.K., but when two characters are shown engaging in sexual activity (clothed, at that), then and only then does the game warrant an AO (18+) rating. That's nonsense. There are a lot of things I love about American culture, and I wouldn't want to live anywhere else, but when it comes to sex, our society is often uptight, immature, and hypocritical.

Having said that, I do think a voluntary rating system is good for business, because video games aren't just children's toys. Games should be appropriately rated so that we know what we're getting (especially for parents), but the rating system should be more realistic and even-handed when it comes to sex vs. violence.

Jonathan D. Glater wrote:
The judge’s latest decision undermines a settlement agreement reached between lawyers for purchasers of the game who contended they were offended by the hidden scenes...

lol - I can just imagine the testimony... "Your honor, I was so offended by those scenes that I had to hack into!"

RE: Settlement Over Sex Scenes in Grand Theft Auto Hits a Snag - Bits - Technology - New York Times Blog