Just recently, the Sims have allowedgay marriage on their games. Oh, and apparently in one of the older Sims (Tower? Copter? City?) Apparently had a disgruntled gay employee who got fired or at least reprimanded for wanting to put in homosexual references. However he got the last laugh as he put in a scene at the end with guys kissing each other. Maxis, of course, soon after issued a patch for those offended by the scene.
However how much of that is urban legend and how much isn't, I'm unsure.
[EDIT] Voldo from the Soul Calibur series seems to have some S & M themes to his get-up I suppose...