Despite the rejection of a sexually-themed MMO at the recent E3 2006 Conference in LA, the "adult" sector of the gaming industry is moving forward.

The First Annual The Sex in Video Games Conference is taking place this weekend at the Kensington Park Hotel in San Francisco, California. This year's theme is "Exploring the Business of Digital Erotic Entertainment," and will focus on the design, development, and technology of sex adult video games from a national and global perspectives. There will also be opportunities for business networking, as well as panel discussions, several lectures and a screening of some erotic "machinema" films (animated movies using game engines and figures).

The two keynote speakers, interestingly enough, are women: Sheri Ray, a game designer with 16 years of experience in the field, will speak on “Gender Inclusive Game Design: Expanding the Market,” which will focus on designing sexually-themed games that appeal to women. The keynote speaker for Saturday will be Regina Lynn, a writer for Wired magazine, who will address the issue of reaching people who may not be "gamers," but may wish to participate in the world of cyber-dating, courtship and sex.