Facing an ever-worsening situation, the company behind the controversial video game “Manhunt 2” has decided to postpone the release of their title. Take Two Interactive Software had made plans to release the game on July 10 for the Nintendo Wii and Sony’s PlayStation 2 and PSP.

After the British Board of Film Classification had banned sales of the game from U.K. shops, America’s Entertainment Software Ratings Board issued an Adults Only (AO) rating for the game, severely limiting Take Two’s customer base (WalMart won’t carry any AO rated games.) Government representatives in Australia and Italy were also considering banning the game from their home turfs and representatives from Sony and Nintendo were going on the record saying that they didn’t want the game appearing on their consoles at all.

Take Two has said that the release postponement of “Manhunt 2” is just temporary while the company reevaluates the decisions of the ESRB and British rating system. “We believe in freedom of creative expression, as well as responsible marketing, both of which are essential to our business of making great entertainment,” was Take Two’s version of events as offered in a press release.

What is likely to happen now is that “Manhunt 2” more violent and offensive content will be neutered by Take Two before the company resubmits the software back to the American and British rating boards. The delay could take months and result in up to $1 million dollars added on to the game’s production costs. Nevertheless, in the end Take Two may wind up raking in more than it first forecasted if the elevated media attention turns into greater game sales.