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From gamasutra.com:

That Kanji’s character comes to American gamers through a Japanese game is not surprising. Japanese attitudes toward sexuality and homosexuality are incredibly different than those of the West, even though the general assumption from Westerners is that the Japanese are a repressed people.

Because there is no legislation relating to homosexual sex, it’s not a hot-button social or moral issue in Japan like it is in America. Many Japanese gay men resist the Western notion of "gay rights" because sexuality is not thought of in terms of what is right or wrong, but rather as play or something people may choose to engage in if they wish.

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