Gay Albion
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From a quick survey of gay characters in contemporary games:
While the fight for gay rights remains heated in the United States, same-sex marriage and gays in the military have never been issues in Albion, the virtual nation where “Fable” players battle bandits and other baddies. Though not integral to the plot, gamers have been able to woo characters of the same sex since the sweeping saga launched in 2004.
Huffington Post: ‘Fable III’ Game Offers Players Gay Marriage, Adoption