I'm glad I grew up around a type of "golden age" with games, I could spend my early teens on different gaming sites and it was all about the video games, no one seemed to have any real agenda outside of wanting to enjoy the damn games. I don't have a problem with gay characters in games, I think that is perfectly fine. I am just saying that even 10 years ago you could chew the fat on video games without having to account for these daunting politically correct topics. That is something kids on the internet have to deal with a whole lot more now. They go to gaming sites now and are confronted with such highly controversial topics, if I grew up around that it might have driven me away from video games.
EDIT: I am not saying that gay characters would drive me away from gaming, I already know this post is probably gonna be misinterpreted. I am saying that the blind innocence of gaming that was either unaware or unwilling to tackle these topics (that do need to be addressed) did provide for an easier fandom of gaming as a medium even though it operated as a shield from important topics such as this.
Moonmist (1986)
In 1986, Infocom released Moonmist, a text adventure mystery with several possible randomly selected plotlines. In one of these plotlines, the criminal is a female artist who is jealous because her girlfriend has got married to a man. This is the first instance of a homosexual character in a video game.
Super Mario Bros. 2 (1988)
In 1988, Nintendo released Super Mario Bros. 2 for the NES. In the first-edition manual for the North American release of the game, Birdo is referred to as a male who believes that he is a female and would rather be called "Birdetta", making her the first transgender character for Nintendo. In the game, Birdo's name was also mistakenly switched with another Super Mario Bros. 2 enemy, Ostro, both in the manual and in the end credits. While the Japanese manual for Super Mario Bros. 2 referred to Birdo as female, later games featuring the character have made conflicting statements of Birdo as female, male or of indeterminate gender.
Final Fight (1989)
In 1989, Capcom released Final Fight for the arcades. One of the characters, Poison, was born male but, depending on the region, is either a crossdresser or transgender. She has since been confirmed as a male-to-female trans woman.
Earthbound (1994)
In 1994, Nintendo released Earthbound for the Super Nintendo Entertainment System. One of the characters featured is Tony who has subtle attractions to his best friend Jeff, according to Earthbound creator, Shigesato Itoi.
Chrono Trigger (1995)
Square's 1995 SNES RPG Chrono Trigger featured a major villain who was transgender. The character Flea, a henchman of Magus, was described as looking like a girl. Flea would exclaim "Hey, I'm a guy!" and later "Male or female, what difference does it make? Power is beautiful, and I've got the power." Flea would later appear with his sidekicks in the sequel Chrono Cross, appearing as a female with a pink wig and miniskirt. However, the battle screen in Chrono Cross displays the enemies' sex with a male or female symbol, and Flea is clearly marked as a man. It is notable that Flea's transgender theme appeared in the US translation of the SNES release, during Nintendo's censorship phase.
Phantasmagoria 2: A Puzzle of Flesh (1996)
The 1996 computer game Phantasmagoria 2: A Puzzle of Flesh featured a homosexual male character named Trevor, who was a close friend and co-worker of the player's character, Curtis Craig. Despite his effeminate and flamboyant portrayal, Trevor is shown as intelligent and is very significant through the game's plot. Curtis admits to his psychiatrist that he has feelings for Trevor and might be bisexual and later the two kiss, although Curtis is also shown as having relationships with a girlfriend and a S&Mdomme. Creators of the game talked about the mature sexual themes in the game during a 1997 interview. Curtis is the first playable non-heterosexual character in a video game.
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