http://consumerist.com/5160187/identifying-yourself-as-a-lesbian-gets-you-banned-on-xbox-live

Teresa says that she was harassed by other players and later suspended from XBOX Live because she identified herself as a lesbian in her profile. When she appealed to Microsoft, she says they told her that other gamers found her sexual orientation "offensive."

Teresa says:

I just recently saw a thing on your site about someones gamer tag being banned because it had the word gay in the tag.

I had a similar incident, only my account was suspended because I had said in my profile that I was a lesbian. I was harassed by several players, 'chased' to different maps/games to get away from their harassment. They followed me into the games and told all the other players to turn me in because they didn't want to see that crap or their kids to see that crap.

As if xbox live is really appropriate for kids anyways! My account was suspended and xbox live did nothing to solve this, but instead said others found it offensive.

Today I received a message from another gamer calling me a fag. I am a lesbian, so they aren't too smart if they cant get their anti-gay slurs right.

Microsoft does nothing to stop this or prevent it, but instead sides with the homophobes. No one will help me get the word out about Microsoft's anti-gay policy. Not even the HRC who says Microsoft has a positive image with them. Not to me it doesn't!

We've heard of gamers being suspended for identifying themselves as gay in their GamerTag, and even one case of a guy whose name was actually "Richard Gaywood" but his tag was suspended anyway because apparently the word "gay" is so offensive that it doesn't matter if its actually your name.

As far as we know, Microsoft is unwilling to reconsider this position.