Bahamut Lagoon’s protagonist Byuu is trying to conquer the sky world Orelus and save Princess Yoyo. One of his allies is a magician named Sendak. The old magician flirts with Byuu, and the player has an option of either accepting these advances, or continuing to pursue the Princess.

Sendak Dialog
Image credit: Image credit http://www.backofthecerealbox.com/2012/08/surprisingly-sexual-pixels-or-lady-or.html

LGBTQ references in this game: Sendak

Citations:

1. Bahamut Lagoon. (n.d.). Retrieved from https://en.wikipedia.org/wiki/Bahamut_Lagoon
2. Bahamut Lagoon. (n.d.). Retrived from http://finalfantasy.wikia.com/wiki/Bahamut_Lagoon
3. Gay Option. (n.d.). Retrieved fromhttp://tvtropes.org/pmwiki/pmwiki.php/Main/GayOption
4. Mackie, D. (August 14, 2012). Surprisingly Sexual Pixels (or – The Lady, or the Old Homosexual?). Retrieved from http://www.backofthecerealbox.com/2012/08/surprisingly-sexual-pixels-or-lady-or.html