Under New Zealand's Films, Videos, and Publications Classification Act 1993, unrestricted video games (games with content that fits G, PG or M classifications) are not required to get a New Zealand label. Instead, they are allowed to carry classification labels from other countries. This is how the video game Naughty Bear came to New Zealand carrying an M label from Australia.
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The Inspectors of Publications work in the Censorship Compliance Unit of the Department of Internal Affairs. They are one of the authorities enforcing the classification law (along with the New Zealand Police and Customs). They have the power to submit unclassified games to the Classification Office.
Find out more about the enforcement of classification law 
Various bears live on the island, including Naughty Bear. The bears decide to have a party, but don't invite Naughty Bear. He is very upset by this, and decides to get revenge on the other bears.
As Naughty Bear, the player's goal is to kill the other bears using things on the island, such as bear traps, barbecues, machetes and guns. The amount of points the player gets increases when they hunt and kill the bears in more brutal ways.
During the game a narrator instructs the player on how to systematically catch and kill other bears. The narrator enthusiastically praises the player for committing violence and driving other bears insane. The more sadistic the violence the player engages in, the more encouraging the narrator becomes.
In the classification decision on the game, we noted that the characters and animation were the sort you would expect to see in a game made for children, yet the game contains a lot of violence and cruelty. However, the violence is very unrealistic and is sometimes funny.
When Naughty Bear hits, stabs or shoots a bear, fluff flies into the air or the bear falls to the ground.
In the game, the player is rewarded with a large amount of 'naughty points' by scaring other bears so much that they become dazed and insane. Once a bear has been driven to insanity it uses any weapon it has available to harm itself, or, if it does not have a weapon, it explodes in a flurry of stuffing.
The Classification Office concluded that an age restriction was necessary:
Unless restricted to persons 13 years of age and over, this material is likely to be injurious to the public good because the general levels of emotional and intellectual development and maturity of persons under that age mean that the availability of the publication to those persons would be likely to cause them to be greatly disturbed or shocked.
– Office of Film and Literature Classification decision
The way the game deals with cruelty and violence led to the restricted classification. In its decision, the Classification Office pointed out that the game rewards the player for being more and more violent. However, the decision also notes that teenagers and adults have a greater level of maturity which will help them to put the violence in the game into context – that is, they will realise it is not real and as a result will be less likely to be disturbed by, or desensitised to, the violence.
Read the Office's reasons for the R13 classification on Naughty Bear (PDF v7, 180KB)