I think xxx games will keep the niche they have now. In the next few years, the only thing that will change is what depends on the capabilities of computer hardware - renderers will become better, VR and AI will play a bigger role (like it or not).
I think the quality will get better but story wise, taboo themes will either start fading away or turn into a niche category i.e., won't be available everywhere.
If the last ten years proves anything, the games will improve both in art and UI as developers get better at their craft. Preferred release platforms (Patreon, Subscribestar, Discord, something new) will bounce around as sites cater to different international laws. This will be annoying, but manageable
AI will definitely be the guiding force of future content considering the capabilities it already has and the rate of daily progress. There are huge shitstorms on the horizon though as AI image generation gets better and better at realistic depictions and more and as more users get their hands on it of course more hentai finds its way from 2D to 2.5D to 3D to photoreal and a lot of things change based on that stylistic difference alone, which will lead many short-minded people to reduce AI image gen down to deviant degeneracy. It happened already, but it doesn't seem to have spread enough for the kind of condemnation it's probably going to face.
It's probably going to be the same spiel we had with video games being so violent today's players are basically tomorrow's killers until even the Karens started to adjust and forget about it to the point we have today, where absurd amounts of violence and bloodshed are not even batted an eye at. AI will likely be burned at the same stake until people adjust. And then the great fappening will lead to the greatest mass numbing of minds and bodies alike. Rip.
Man... I should become a fairytale author, with the kind of plot twist I just pulled there
If we take the present, there are already 3rd person games that have a function for connecting to a special device that will work during the act and repeat the character’s movements, but if you look at it in the future, then most likely something related to technologies from the anime Sword Art Online
The future of AVG industry looks bright imo. The video game market as a whole has been growing at a steady 12% year over year. That and new emerging tech like VR makes me excited for the future of AVGs.