A college student posted his sped up presentation on Video Gaming and Sex recently on YouTube, and made a lot of the points which make sense. The basis for his argument being that given that now where video gaming can reach new potential in storytelling given the technological achievements being made.
However, until video games have sex as part of the story in the same way that a book or film would, it will be picked on and scape goated for whatever since video games are for some odd reason still perceived as being a children's toy. As an artform video gaming is still in its infancy, so time will tell how things turn out and how serious game makers decide to take it. I think Mass Effect was the first step in the right direction even though it was lambasted in the news for portraying, "the most realistic sex scene" ever and there was potential that a (gasp!) lesbian relationship could occur in the game. People be crazy sometimes.