"William was told about the photos this morning. He's not impressed," a royal source told Us Weekly.
As for the rest of the royal family (including grandmother Queen Elizabeth, father Prince Charles and sister-in-law Kate Middleton), they're reportedly crossing their fingers that the scandal will blow over quickly.
"The Palace is just hoping no more images emerge," an insider told The Huffington Post. "As cheeky as these pictures are, they are just happy his crown jewels were not exposed … at least for now."
In two pictures, taken in a Las Vegas hotel suite and published by TMZ, a completely nude Harry is shown partying with two naked women (or possibly one woman photographed twice). One shot, taken during a game of strip billiards, shows the Prince's fully exposed rear end; the other, snapped from the front, shows Harry cupping his genitals with his hands. Both times, he seems unaware that he's being photographed.
The photos were reportedly taken on Friday, after Prince Harry and his "large entourage" invited a group of ladies from the hotel bar to party in his VIP suite. Buckingham Palace has confirmed that it is indeed Prince Harry in the photos, but made no other comment about the scandal. According to HuffPo, the pics could do serious damage to the royal family's reputation.
Harry's hard partying could also reflect badly on the British military, in which Harry serves as a Captain of the Army Air Corps.
"He will be reprimanded [by the army]. Officers should never bring the Service into disrepute, whether on or off duty," a military official told Us. "This type of behavior is not expected of someone his age and rank. They will call him in when he gets back and want to talk to him about it."
Another military source told the UK Telegraph that the prince will likely be censured, though not severely punished, by his commanding officer.
Harry, 27, has always had a reputation as a party animal, but lately it seemed like he was growing up. Recent reports focused on his charity work and military service, as well as his diplomatic duties for the Queen's Diamond Jubilee. Judging from the pictures, however, it seems that old habits die hard.
"HOLY MOTHER HARRY LOOKS FIT," the pop star tweeted at her makeup artist Tara Savelo on Wednesday. "I hope no ones mad at him for that, I'm certainly not #RoyalsArePeopleToo."
As much as she enjoyed the photos, Gaga empathised with Harry's personal life getting splashed all over the gossip columns. "But truly," she added, "f*** off to whatever s***ty friend took those picture and leaked them."
The royal family might choose different words, but we're sure they'd agree!