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This change in policy comes due to significant feedback from the service's community asking for the ability to be open about such personal details, as well as their nationalities
Up until now, Microsoft's policy has been to bar any discussion of sexuality in profiles or gamertags, which prevented those who wanted to publicly identify as gay, lesbian, bisexual, or transgender from doing so. Toulouse said at the time that 98 percent of Xbox Live members using the term "gay" did so in a derogatory manner, rather than as a way of self-identification.
Xbox Live members will finally be able to express their sexual orientation, race, or religion in their gamertags and profiles