Yeah, it's rather strange that when you say sexuality, people immediately assume we're talking about hardcore porn.

A game with nudity won't add nothing to the quality of a games in contrast without violence the majority of genre would competly disappear you can't make a fighting games without violence an fps or tps without violence ,a games that talk about some history like Metal gear solid need violence

You realize that we can cuss within reason and hentai is not a naughty word? Of course, games with nudity in 'em would be rated Mature and should be out of reach of children unless parents buy them those games. 

I think the only reason it's made out to be such a big deal is because gaming has been such a male dominated space (and is still perceived by many to be as such) for so long. So because the perception is that the medium caters only to guys, sexual content devs put in their games will always catch more eyebrows than in other mediums such as TV and movies where everybody widely accepts that fact the both sexes are being considered when making the material.

But I think the walls are breaking more and more these days

Theres a few things I see wrong with your post, although I agree with your main point. It is damn hard to encorporate sex into games without making it feel weird. You could put it in a cutscene, but lets face it, those do nothing to add to the game. There are always exceptions though, and limiting creative freedom is never a good thing.

And that is just what these legal and sociological barriers are doing...limiting creative freedom. Like I said in my earlier post, Hotline Miami 2 has been banned from Australia for featuring a rape scene, and in fact any depiction of rape in video games (I think even implied rape) gets an automatic ban in australia. Then you have things like the massive reaction after someone hinted that there would be rape in the Tomb Raider reboot. These things scare developers away from the choice to include things in their game. 

Now some of my problems with your post:
-Children should not be playing M rated games. Period. End of discussion. If you as a parent don't want your kids playing this type of thing, that is your job to enforce. Theres not going to be a universal ban on R rated movies because a kid might get their hands on it...that is just illogical
-There is a lot more to sexuality than pornography and I think there are a lot of creative venues which could employ this stuff in a way that truly adds to a game.

I do, but I am really trying to be considerate of the younger users here. If I wouldn't want this sort of stuff exposed to my daughter I don't want to expose to other guys daughters. Just my morals bro.

I can understand that. 

Because people just want something to complain about, I mean if you're going to complain at least complain about the thing that isn't natural (sex) vs something where you're murdering a thousand people in a single scene (violence).

Not that I'm complaining about violence myself, I'd prefer no complaining at all because at the end of the day video games aren't hurting anyone (even if politicians try to make you believe otherwise)

QTE Sex scenes!!

EDIT: I also agree with your rated M for Mature... I wouldnt let my 7 year old play COD like many of these parents here in the States do. They play GTA as well. Maybe I'd let my TEENAGE child play these games... but I'd have to have a LONG TALK about it b4 I allow them to play.

we share opinions!