I think I'd like to see proof of this, but I'll be taking this with a small(ish) pinch of salt.
For starters, how would this get through the ESRB ratings? It'd be banned before previews started. Second, you'd have to be nuts to release a porn game, Mass effect created total unnecessary uproar for two seconds of bare ass, imagine what hardcore sex as the sole object would do. Third, why the hell would you release a porn game on a console that has been traditionally built with the younger generation in mind? If you'd said XBOX 360 or PS3 I'd be a little less suspicious. I suppose it could happen... but why?
I'll say this for the nutters who are making it, if indeed such a game is being made, they're bloody brave... but I still don't like this, there's potential for disaster here, its way too easy for a game like that to get into young hands. You leave it in the console to grab a drink, get sidetracked, little Jimmy picks up the remote thinking he's playing an innocuous game of tennis, and OH DEAR GOD WHAT HAVE YOU DONE TO MY SON YOU PERVERTED ASSHOLE!!! Big media disaster, huge restrictions on gaming, and one very traumatised family... gaming has a bad enough rep in some circles as it is, do we want to make that distrust universal?