From gamesindustry.biz:

Microsoft has paid an out of court settlement to videogames developer Jamie Durrant, who sued the company over claims of unaddressed homophobia within the company’s Lionhead Studios.

The unspecified payout has settled the case, in which Durrant was asking for GBP 45,000 over "hurt feelings", after his complaints of homophobic abuse were "blatantly disregarded" by Microsoft’s human resources department.

"We are pleased to have reached an amicable resolution to this matter with Mr. Durrant," said a Microsoft spokesman, according to PinkNews. "The terms of the settlement are confidential, but we can confirm that Mr. Durrant will not continue his employment at Lionhead as part of the agreement."

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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