I've never had a problem with nudity in games. It doesn't phase me whatsoever when a woman gets her tits out. I'll admit, I was slightly taken aback when that dudes dick was flapping back and forth in that one scene in GTA4 Lost and Damned, but that was because I simply A: wasn't expecting it and B: was a first as far as I know of.
But on the other hand, I do get rather annoyed when I see nudity in games added simply because tits. I don't consider Duke Nukem Forever in that category, simply because the only time nudity should be used is when it fits the game/scene/atmosphere. DN has always been a tasteless game series, and the game NOT having tits in it would actually have been rather surprising and out of place. Another good example where it worked effectively was Dante's Inferno. Even though it was extremely weird to be attacked by vagina tentacles which did nothing but remind me of a few episodes of Bible Black, it was all fitting in with what the developers were going for.
I actually can't think of a game where nudity hasn't been suited for it, but I actually can't remember many games with nudity in them. DNF, GTA4, Dante's Inferno, Max Payne 3....so, four games. I'm certain there must be much more than that, but they're the only ones which come to mind, and they were all about atmosphere/authenticity to the scene more than wanting to get some controversy going.