The loosely-worded law would have demanded a new state-mandated rating label for games, with retailers fined if minors obtained a title that contained "serious injury to human beings in a manner that is especially heinous, atrocious, or cruel."

The new label would have accompanied the voluntary ESRB content ratings that already appear on game packages in the United States and Canada.

The initial legal battle over the law required California to reimburse the Entertainment Software Association to the tune of $282,794 in legal fees. After the unconstitutional ruling arrived in 2007, Governor Arnold Schwarzenegger vowed to appeal the decision.

"This is a clear signal that in California and across the country, the reckless pursuit of anti-video game legislation like this is an exercise in wasting taxpayer money, government time, and state resources," said ESA CEO Mike Gallagher. "In the end, common sense prevailed with the court determining that, after exhaustive review, video games do not cause psychological or neurological harm to minors."