Last year we discussed news that an Xbox Live gamer was banned for identifying herself as a lesbian on her profile. Microsoft said at the time that nothing sexual in nature could appear in Gamertags or profiles. Now, they seem to have reconsidered their stance, and they've updated their Code of Conduct accordingly. Xbox Live General Manager Marc Whitten wrote: "[The update] will allow our members to more freely express their race, nationality, religion and sexual orientation in Gamertags and profiles. Under our previous policy, some of these expressions of self-identification were not allowed in Gamertags or profiles to prevent the use of these terms as insults or slurs. However we have since heard feedback from our customers that while the spirit of this approach was genuine, it inadvertently excluded a part of our Xbox LIVE community. This update also comes hand-in-hand with increased stringency and enforcement to prevent the misuse of these terms." Read more of this story at Slashdot.