Downloading pornographic games off the internet? Makes sense I guess, we all know the internet is for...
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Sorry, It had to be done.
To seriously address the issue... there are plenty of pornographic games, even a pretty decent one I once played called Brave Soul. It was kinda like Diablo but with worse graphics. It wasn't a TERRIBLE game though, and was decently interesting. Which was good because it didn't jump into the sexy bits right away. There IS a market for it, but it's an incredibly niche market and not nearly the size that normal pornography would be. Now, Digitally Distributing movies is an idea, and one i'm suprised hasn't gained more steam. Usually Pornography leads digital technoligy.
Also, as much as I hate to agree with a guy who dev'd a game called BoneTown, the AO rating IS soft censorship. Unfortunatly it's just something built into the US culturally- the stores won't carry AO stuff because people would pitch a *****, the Consoles won't carry AO becase the people would pitch a *****. It's not likly to change anytime soon- look how long it took us to get a black president, and racial equality has at least a centurys headstart on "sexual liberation". The internet is their best option for...whatever atrocious games they're going to make. Honestly if you want a Porn game? Dead or Alive: Beach Volleyball. Nuff said.