According to child psychologist and author Dr Tanya Byron, an irresponsible video game ad has the potential to be a piece of inappropriate content itself, and can also be part of a process that encourages children to play unsuitable products.

“Efforts to ensure the responsible advertising of video games should be seen as one of the key mechanisms to minimise and manage potential risks to children and young people from playing video games that are not appropriate for their age,” she said.

“Some 42 per cent of people who responded to a question relating to the advertising of video games in my Call for Evidence said that the advertising sector must be more responsible in its marketing to children and young people.”

The video games landscape covers a broad spectrum of products, played on different platforms, with the best-selling games having similar earning potential as the biggest Hollywood films. The UK is the largest market in Europe, employing some 22,000 people as the world’s fourth largest developer.

Recognising the size of the industry, the report proposes that computer games should be forced to carry prominent cinema-style age classifications to protect children from violent or unsuitable material.

Byron suggests the research is completed in time for the government to take stock of the evidence and act accordingly by spring 2009.

Said Byron: “In taking my recommendations forward, we should be aiming to ensure that children and young people play video games that are age-appropriate and that they encounter risks that are minimal and possible to manage, or find support to manage.”

Ed Balls, secretary of State for Children, Schools and Families said: "I am grateful to Dr Byron for carrying out this review and the recommendations show a convincing analysis of how we can properly manage risk in a fast paced, fast changing new media environment."

Balls and Andy Burnham, Secretary of State for Culture, Media and Sport, have accepted all Dr Byron's recommendations, and  pledged to act immediately on taking forward her proposals.

The recommendations have also been welcomed by the Advertising Association, which was actively engaged in supported information for the report.

Baroness Buscombe, chief executive of the Advertising Association, said: “The review highlights the important work undertaken by the Advertising Association’s Digital Media Group and recognises that the industry project for future proofing self regulation of advertising on digital media is well underway.

“Furthermore, by recommending awareness campaigns she demonstrates how the positive power of advertising will continue to help close the digital divide by creating informed consumers and giving everyone the opportunity to become a digital native.”

Similarly, media regulator Ofcom welcomed the findings and “the opportunity it affords for a timely and balanced discussion of the issues”. Ofcom chairman David Currie added: “We believe the Review will inform and stimulate an evidence-based debate with industry, government and consumers about the possible range of activities to help address these real concerns.”