Why is it so important for this person to advertise, in a gaming context, that they are gay / lesbian? What does that that have to do with anything? These people give every other gay man or woman a bad name. Homosexuality makes some people uncomfortable and if there's no really good reason, why persist? There is no good reason what so ever to make it a point to let people know who you like to have sex with on XBox Live.
BTW. I'm gay so don't go calling me a homophobe.