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I'll say no more
Anyways, as to the topic at hand, is that name really necessary? If he was in fact gay, he's just making himself an unnecessary target for homophobic abuse. If he's not gay (as most kids who will choose to put the word "gay" in their GT), then it's just a way to make fun of gays all over.
MS didn't ban him for being gay or anything, they just want him to change his name. Having such a controversial name on a service full of immature 10 year olds who don't know what to do around homosexuals (like this twat Lord_80) is just going to jade and alienate theGAYERgamer instead of making him want to use XBL.
Mind you, I don't think he should be getting this sort of trouble, but the fact is, he was making himself a target.
I mean, you hear about people calling others 'fags' and 'gay' as an insult on LIVE, making your gamertag openly homosexual is kinda asking for it to be worse.
It shouldn't be an issue, but common sense dictates that it will be....
Much the same as if say, a woman posted "PromiscuousDramaQueen" or some crap like that....It may be just a name, but it is kind of 'asking for it', and they would probably know it.
The fact is, while it shouldn't be the case, there are oversensitive people on the net, and jerks besides. If you're going to post something needlessly attention-seeking, you better be prepared for the attention, especially negative stuff...
i.e. if your homophobic, keep it to yourself.