The gaming industry quickly changed 'Grand Theft Auto: San Andreas,' rating to 'Adults only,' when sex scenes were discovered in it earlier this year. And Rockstar had to release a new version without the virtual pornography. Many retailers will not sell mature-rated games to customers under 17 years of age.

Now with the release of Rockstar's 'The Warriors' which is based on the multi-racial street gang fights in 1970s-era New York City, we can expect some more anti-gaming talks from certain social groups to linger around us.
Then you have the 'Blitz: The League,' from Midway Games where players can simulate the seamier side of pro football. It allows virtual players to take drugs or even 'sabatoge' opposing teams with prostitutes - actions that affect the outcome of the game. Gammes around the Playboy theme are common nowadays.
It will be an intersting fight: between all the creativity and freedom-of-expression types on one side and the moral police-cum- law on the other.
Though sex in minor doses has always been a tool of the industry. Even Lara Croft will testify to that.Ha! as if video games are the only means of entertainment which leaves an effect on minors and inject into them the drives of violence or sex. What about the television industry, the Movies and the Music which carry all these so called explicit content in hidden form? Take an example: What happened when the kid in Terminator 2 was driving the bike at a wild speed without a helmet? No, the great Governator was there to take care of him!
As the Chinese Curse goes, 'May you live in more interesting times.' The Sex In Gaming story has only started. As it hots up, check out the following links and stay gamed.
Further Reading
Sexual Moments in Video Game History
Sex content leads to adult rating for 'Theft'
Sex & Games: A Study of Sex in Video Games
Grand Theft Auto - Sex Scene - Video Link!!