Why is there an AO rating from the ESRB but no system wants it? Why are there a plethora of FPS and horror games with adult subject matter but nothing for adults? I know that SOME games made it to market with nudity (exposed breasts) but why is there no committed porn? I ask because the gaming market has grown up to adults and like adult they want adult material. Is it because the demographic is too small to make back a profit or because of the bad PR that would come their way? I don't see why it should be a taboo area to get into. What with movies, magazines and the like I think that developers are missing an untapped market. I like pornographic manga and I am aware of online computer porn but they don't have the best quality that a development studio can provide. Is this just a unprofitable market or are people too scarred of the backlash from the finished product? I know some games have made an attempt but I feel they did it more as a joke than making something adults could enjoy. Japan has some porn games that are popular but they are more open to porn than us westerners. There have been some big budget porn movies that have been extremely popular so why can games be that way as well? I believe that games are just another medium to convey a storyline can can be just as significant as any other. So why can porn be just as part of a large medium as them. I would hope to get both male and female answers from this.
First off you are right that it is not enough money to be made and bad press in the Western market if a company did that in the US. Second religion and relationships can hold back the whole market.
Look the Audience is too small and it is too risky to do that publicly. Most porn things are looked down upon. Sorry I ranted but it is sooo much more then just the money. They won't make money if there is a bunch of things holding people back. If you want to find out a few of the things holding this back read on. If not thanks for your time.
If your Christian wife comes home with your 5 year old son while you play a porn game you will have a huge fight and Most men who have families will not buy this game and play it so open on a console then show all of their friends they are playing a sex game. Sure a guy could hide it but that is too much work for most gamers. The reason I bring in religion is that religion looks down upon sex. Most people agree sex should be controlled in some fashion and religion is a "good" base say no sex. There is "God" watching and that you go to hell forever is pretty effective. If there was no religion then you would have to deal with women. They want a man to be faithful because with children the cost money and a woman is putting herself in a huge risk of loosing her job and her life. 100 years ago women died during child birth all the time and it still happens. So if you have a man who is looking at sex not about her then that can cause problems in life.
Now women and religion are not bad. (religion used in the right way is helpful to some. I say some because all Christianity and Muslims have killed based on the wrong reasons but it has happened.) We need woman to have sex, have kids and a healthy life with a life long partner/ best friend. It is something that straight people need anyways. I love my wife and I don't think all things negative things all the time. I know what a sane human being should do and not do. I can't go killing people that is not right. Just like I can't buy a sex game and hide it like crazy from everyone in my life that has to trust me to survive and grow together. The problem is also WHY. Why should most gamers buy a sex game. Sure not all of them have a partner but most men grow up and find a girl they want to spend most of their time with and have kids and teach those kids to be good successful. Now I say men because most gamers are men. Men drive the sells and let this type of business exist.
Answer to your problem is that the budget of making is more than that of making movies and to have high end porn games need many programmers and sponsors which they cannot have easily. On other hand people will not buy those porn games because they are readily available on torrent in few days and their market is significantly less than Hollywood movies and game like that of EA.