Age of Conan: Hyborian Adventures Interview

MTV Multiplayer blog has a word with Funcom Product Manager Jorgen Tharaldsen to quiz him about nudity in Age of Conan and if - considering the Mass Effect "sex scandal" - they aren't fearing a "nipplegate" by letting players choose to let their MMO avatars run around topless.
From the start, Funcom planned nudity for (Age of Conan.) (We have always had solid guidelines internally. Regardless of your sex you will always wear underwear, minus the top of course, which means that we will, for instance, avoid a lot of, eh, interesting Youtube videos (seeing we have hundreds of emotes in the game). If we would have allowed full nudity it would just have created a lot of unnecessary havoc around the game.)

Unfortunately for the female players of the world (sorry, Tracey!), unless you count larger-than-life abs, there's no male nudity in (Age of Conan.) As Tharaldsen points out, there's no peeking below the waist. Such exploits might have been part of Howard's literary works, but there's no place for them in the world of games not yet, anyway.

(We're not adding partial nudity just for the sake of having it in there. We're doing it because we're trying to create a relatively realistic world based on the original literary works of Conan, and that includes having a certain amount of nudity. We could have gone all out on this, but we want to remain within the boundaries of what is, well, relatively tasteful, and there is therefore no need to add unnecessary nudity in any way.)