Microsoft apologizes for "rape joke" at E3

A demonstration of "Killer Instinct" at Microsoft's Xbox One press conference at the Electronic Entertainment Expo on June 10, 2013. GameSpot

Microsoft issued an apology for an inappropriate joke made during a demonstration of "Killer Instinct" at the Electronic Entertainment Expo (E3) on Monday.

During the demonstration a male producer of the game was matched up against a woman, who appeared to be bad at playing video games. Awkward gaming banter between the two up being interpreted as a rape joke by the audience, when the man said: "Just let it happen. It'll be over soon."

Microsoft apologized for the behavior of its employee and issued this statement from Microsoft Studios corporate vice president Phil Spencer to CBSNews.com:

"Yesterday, during the Xbox E3 briefing, one of our employees made an off the cuff and inappropriate comment while demoing 'Killer Instinct' with another employee. This comment was offensive and we apologize. At Microsoft, being open and respectful with others is central to our code of conduct and our values. Bullying and harassment of any kind is not condoned and is taken very seriously. We remain committed to make gaming fun for everyone, and in that effort, we must lead by example."

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