APPARENTLY … banning any mention of sexuality in video game communities is not the best way to deal with homophobia in gaming. Microsoft, which runs the Xbox Live service and is among the gaming companies that prohibit users from using the words "gay" or "homo" in its games (and is among those that face criticism for it), says it's revisiting this policy.
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I wouldn't really call this news in the gaming world. The gaming world has always claimed it wants to stem homophobia but has never done anything about it in the long run. Rather its Blizzard getting sued for banning gay players that mentioned they were gay in public channels, EA getting sued for trying this same stunt that Microsoft did, or Microsoft reversing the policy after a great deal of pressure, the gaming world has always been rampant with homophobia.