The first Sex in Games conference is in full force in Northen California at the minute and, as Wired reports, anyone who's anyone in the adult-oriented interactive game industry is there discussing all things serious and saucy.
Daniel Terdiman gives his overview here. From the article:
...because the conference is an opportunity for many in the industry to learn how to market their games in the post-"Hot Coffee" era--meaning after the 2005 scandal in which the popular game "Grand Theft Auto: San Andreas" was discovered to contain hidden sexual content, despite its being rated for ages 17 and up rather than for adults only--many on hand were interested in talking about what it will take to get the growing number of adult-oriented games off the ground.
Great links.