In one way, this is not a complicated issue at all. Video games are NOT the toys they were back in the 70's through to the early 90's. That stopped the moment these things started appearing on game boxes:
Once that started happening, they became an entertainment medium, just like films and TV shows. And just like films and TV shows, the creative works within can be made for a wide variety of audiences from very young kids to adults only. So if adults want to have sexual content in video games, that's thier right.
On the other hand, when it come to how this has been done in terms of inclusion and representation, it is a bit more complicated. Just like in other entertainment media, that is something that needs to be judged on each specific game. Sometimes it's done well with context and handled in a mature way (I'd say The Witcher, Mass Effect and Dragon Age Inquisition would count as that) and sometimes it's not (
some GTA games, Metro Last Light, Duke Nukem Forever, Ride to Hell Retribution), but either way I feel it's wrong to generalize this as a problem with gaming as a whole. Or at the very least, not with gaming alone. Movies and TV shows can be just as guilty of this.
So this is a social problem, not a problem with gaming, but I will admit that in gaming is whare the problem is probably at it's worst. On another forum I have dealt personally with somebody who was convinced that a video game heroine can't count as such unless he found her attractive. I know, its ridiculous.
Developers at times haven't exactly helped either. My avatar on this forum is Velvet from Tales of Berseria, a character and game I absolutely love, but even I have to question whether it was realty necessary to design her character model and standard costume with her "stuff" half hanging out.
So I get it. Whilst I personally have no problem with sex and nudity in games, that's what ratings are at least party for, I understand why this is frustrating for others, especially woman and girls who play games. I'm all for creative freedom of developers and art design in the gaming industry. And no, not in the same way as misogynistic, homophobic, racist man-babies do who are deliberately selective on what counts as
somebody else's creative freedom and thus are complete hypocrites, but that's another rant for another topic. I mean when I say I'm all for creative freedom of developers and art design in the gaming industry. Creators have the right to design characters and whatever else in the game exactly how they want with whatever motivation lies behind that choice, including deliberate efforts to be more inclusive. Like or or not man-babies, that counts as a developers creative freedom. Deal with it.
Sadly, no design is going to please everyone, so I would also insist that developers have to take responsibility for their design choices as well. For example, I'm not 13 anymore, so whilst I do not have a problem with sex and nudity in games, it doesn't change the fact that a game including it with no point to it other than a juvenile excuse to show some boobies is embarrassing. Likewise, a game taking inclusivity too far to the point whare it's preachy can be really annoying, especially to someone like me who isn't prejudiced, and thus not threatened but strong woman, LGBTQ+ characters or people of other races or religious backgrounds (Just in case anyone is wondering, I'm a cisgender, straight, white male). If game developers want to address bigotry and prejudices in a game, like in The Last of Us Part or Bioshock Infinite, that's fine to me as well. It's a perfectly legitimate choice in fiction to reflect and take inspiration from whatever real world issues and scenarios they want.
But I'm starting to go off topic here, so I'll reign myself in and save the rest for another topic. To summarise, I take no issue with sexual themes and nudity in games, but understand why others find it frustrating. If both game dev's and gamers could both just handle these themes maturely, at least a large portion of the problem goes away. Going back to the ratings system, whilst I'll forever insist that change video games went through to stop being toys and become an entertainment medium that could target adults with adult themed content has been a great thing for gaming, it has led to a new set of problems as well, perhaps inevitably. I do feel that the depiction of woman in games has improved a lot over the years, just look at the newer Tomb Raider games vs the gams from the 90's and early 2000's, but I wouldn't blame anyone for feeling there is still room for improvement.