> Surely a lot of people are paying money for these video games, or else they would not be produced.
Absolutely. It is important for me to be clear that I do not believe video games are significantly less sexual overall.
I do think, however, that people's treatment of sexuality in media is dramatically different, and the amount of criticism and scrutiny that it receives outpaces most other social issues these days. This has led to at least a little bit of a chilling effect, as if you're a game developer, or anyone else producing media, you probably feel the pressure to be a lot more careful about exactly how you handle sexuality, as things have gotten a lot more cutthroat overall. That's not to say every consequence of this has been unilaterally bad, but I do personally believe that this leads to things that overall feel less authentic in a lot of cases. Personally, I like to see people's personal creative visions, uncompromised by concerns of how it will be perceived.
But socially and in media coverage, I do see what I personally would consider regressive. It feels like socially, the safest thing you can do is merely tolerate the existence of sexual content, and outwardly enjoying it can earn you some scrutiny. For example, A good amount of the NoFap crowd paints pretty much anyone who enjoys pornographic content as being pornsick. In addition to just them, there is a serious amount of scrutiny regarding the nature of sexual content, and there is a lot of pressure to be careful about how you openly enjoy things; the safest place to be is to merely tolerate sexuality rather than embrace it. If you do embrace it, you can count on it being scrutinized. If something you enjoy is considered problematic, such as a relationship with a power dynamic issue, it will be scrutinized-it doesn't matter that there's media like Game of Thrones filled to the brim with incest and other such content. (In fact, Game of Thrones has become almost cliche to bring up, not unlike Grand Theft Auto with regards to video game violence.)
I can see why my position seems startlingly inaccurate from some perspectives. That said, I do think there is something regressive going on, even if describing it as "puritanical" is perhaps a misstep, as it is clearly a lot more nuanced than that.