From escapistmagazine.com:

The theme for this year’s Game Design Challenge was enough to make a game designer blush: the first time they had sex.

Every year at GDC, the Game Design Challenge tasks a handful of designers with creating a game around a specific concept or object. Past years’ challenges include making a licensed game for the poetry of Emily Dickenson, creating a game that used fabric as a controller, or designing a game to be played with an animal. This year, a trio of developers were asked to design a game around their first time in the sack. There were a few rules, of course. There was really only one restriction – the game their game concept had to be playable on existing technology. Keeping their games Wal-Mart friendly wasn’t technically part of the rules, but the participants decided to err on the side of good taste, anyway. For the most part, that is.

From joystiq.com:

There’s definitely been a steep drop in the amount of booth babes over the past few years at GDC, and the lone holdout seems to be N-Gage. They have a lot of silver jumpsuit-clad babes, complete with space-age utility belts around their waists, urging people to come into their mobile space. One girl was actually clapping loudly to try and lure in the shuffling hordes of developers, not to much avail.