A change to the Xbox Live code of conduct this morning now allows gamers to express their sexual orientation in Xbox Live profiles or Gamertags.
The new policy states:
"You may use the following terms to express your relationship orientation in your profile or Gamertag: Lesbian, Gay, Bi, Transgender, Straight.
Other terms regarding relationship orientation are not allowed. In addition you may not use these terms or any other terms regarding relationship orientation to insult, harass, or any other pejorative use against other users."
Last April, Microsoft officials met with the Gay & Lesbian Alliance Against Defamation to discuss the way Microsoft was handling the banning of players for using terms to describe sexual orientation.
This morning the head of Xbox Live policy and enforcement wrote on Twitter that he was "proud to announce" the worldwide changes made live today with a "Special thanks to GLAAD and Microsoft's LGBT community for guidance on the terms."