One of the sub-bosses in Streets of Rage III is Ash, who is widely described as a very stereotypical gay character. He is dressed as a leather daddy, and wears the female/Venus symbol on a necklace.
He was removed from the PAL and US versions of the game, but still accessible as a playable character through cheat codes. He is also, according to the poster of this video, one of the stronger characters in the game.
This Wikipedia page also asserts a transsexual villain was removed from the game, but we can find no confirmation of this.
- Ash. (n.d.). Retrieved from http://www.giantbomb.com/ash/3005-14272
- Ash. (n.d.). Retrieved from http://bareknuckle.wikia.com/wiki/Ash
- Buchanan, L. (2009, March 6). A History of Insensitivity. IGN. http://neon.stg.www.ign.com/articles/2009/03/06/a-history-of-insensitivity?page=2
- MD Streets of Rage 3 (Bare Knuckle 3) Axel vs Ash. (n.d.). Retrieved from https://www.youtube.com/watch?v=DSdmG5D_5OI
- Sexual moments in video games history – Bare Knuckles 3. (n.d.). Retrieved from http://www.i-mockery.com/minimocks/sexual-games/8.php
- Streets of Rage 3. (n.d.). Retrieved from http://en.wikipedia.org/wiki/Streets_of_Rage_3
- vandald. (2011, April 28). Streets of Rage Remake – Ash part 1-5. YouTube. https://www.youtube.com/watch?v=9VodBRrU4Nw