OK, this site is pretty damn funny, especially the “projects” section…
WARNING: despite the name, the site is pretty worksafe - no nudie pics - but don’t click on it if you don’t want large pictures of dildoes displayed on your screen. WARNING ENDS.
Google for Bunny Poker. It’s an online game with several cuties who proceed to become nekkid if your card playing skill exceeds theirs. If you’re a good card player, I wouldn’t try it at work. 
Not to mention, there are creators out there who make adult items, where your Sims can get into some really raunchy activities.
But um, it’s not like I know anything about that, or anything.
There’s always the hack for Max Payne 2 where you can play as a naked Mona Sax.
Makes the game crash, I think. Sometimes.
-joe
Bippy - Ah, DOA Volleyball. Madman’s Cafe was absolutely apoplectic about that one for months.
Nothing ever goes beyond suggestive, and the suits never come off. And of course, no matter how skimpy, they always cover what matters. I’m surprised you find this shocking, as it’s no different from countless other console games that didn’t go close to all the way. (Like the “strip club” in Grand Theft Auto Vice City…wasn’t really expecting full-on nuidty, but it felt just a little weird to see “strippers” in lingerie that never came off.)
Anyway, if you want the REAL adult experience, don’t look to the consoles. It’s just not there, domestic or import (domestic is an utterly hopeless case). There’s some good stuff for the computer, but nearly all of it is imported.
I’ll add that the whole industry really ought to make a serious attempt to quantify the various levels of sexuality/adultness/whatever you call it and not rely on garbage labels like “M for mature”. (In particular, above and below the waist makes all the difference in the world, and I’m sick of all those “adult” games that think a 1-second breast flash every so often is enough.) But that would require them to admit that some people like these types of games, and with the kind of pressures the console manufactures have to deal with…forget it.
…but if it floats your boat, hey, knock yourself out. 
- DKW, who obviously has way, way, waaaaay too much experience with this sort of thing.
Or you could try the PS2 equivalent to DOA:XVB - Rumble Roses!
Tried it for a wee while. It’s a surprisingly tough wrestling game unless you use cheap-ass tactics. Some… errr… interesting submission holds. There’s even a photography mode to unlock.
Or another term for you to Google; hentai games.
Why is it called ‘Dead or Alive Extreme Vollyball’? Do the players get killed if they lose a game?
Dead or Alive was a series of martial arts beat-em-up 3d fighting games, that got some fame for well rendered female characters. The volleyball was an offshoot of this franchise based on all the females from DOA getting together for a volleyball tournament on a desert island.
DKW shocking as in “The vicar always brings a nice fruity tart to the church fete”
check out Sociolotron - google is your friend!
the game while it has been talked about being more about taking cybering to a new height is actually a really cool RPG. Still in the beta stage but defintely worth a play and it is FREE!
Just remembered something. Bippy, there’s a virtual paper doll program called KiSS that you might be interested in. I know there’s a bunch of adult-oriented applets for this program, some of which go into hardcore porn, but I can’t find any site that has 'em.