I'm trying to imagine a sequence in a GTA-esque game where you have to torture someone for information, and I don't think it'd work. The game is too farcical - you'd need the sequence to be in a more 'dramatic' game. And I think you're right. The odds of a gaming company, even a "controversial" one like Rockstar or Running With Scissors, is very slim. Even Rockstar's Manhunt games stopped shy of torture.

An old live-action video game from the mid '90s titled Spycraft: The Great Game had a torture sequence. You had to interrogate someone and had control over how much voltage to use. It was quite easy to inadvertently kill her - and I will say that the first time I hit a switch and saw an actor screaming in pain actually was very jarring. Even knowing damn well it was an actor in a video game.