There is truth to that statement, but I have to ask if you aren't focusing on the wrong things. Video Game companies are simply answering a demand. They make games full of violence and sex because the publlic wants them to do so, not just for the hell of it.
They are also doing so in a manner that gives parents a reasonable chance to edit things for their children (No Sales of "M" games to minors, comprehensive rating system that is easy to understand and clearly marked on the package, etc.).
Grew up playing violent and sexually themed video games (Weren't the sole games I played, of course) and had the understanding that what was in a video game was not real life. I do understand that in some cases, children don't know the difference, but get corrected whenever this occurs in real life.
Violent video games blamed more often for school shootings by white perpetrators. People are more likely to blame violent video games as a cause of school shootings by white perpetrators than by African-American perpetrators, possibly because of racial stereotypes that associate minorities with violent crime, according to new research. Source 8a.
The giving characteristics in many games makes it almost impossible to personally get into the game. Yes it might bring your eyes and mind to attention but can you really go around saying that you have a new hobby, or go talk to your parents of the accomplishments you have done? Not really, violence I can see a better opinion on, it kind of gives you the out of body experience of doing something you wouldn't do on your own, and settles the urge to find out in real life. However sex, it is only a trick to gain viewers and or cash, everything is mentally disturbing and I believe that sex in games are more likely to influence the user than violence and often brings personal urges of those influence to do the same to others in the same situation as the game. It is also the fact that they portray the other gender as being easier than that actually are in real life, so its not only a bad thing but it also causes you to be in a disadvantage in your true experience of what you see in videogames.