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.).
Maybe this is why retro games are making a comeback. In my day there were no issues with sex or violence just good fun trying to get the high score or solve the mystery.
Many such retro games are very fun, such as Undertale and Shovel Knight, as well as Role-playing Game Game Maker games, and many platformers.
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.
A pause from Violence & Sex in Games to share wise words from way back when:
Today is: 19th June (GMT), in history on the 19th of June, 1862 AD the following event happened:
Slavery outlawed in US territories