They already have GLBTQ material in some of their games that have sold well:

According to the North American instruction manual of Super Mario Bros. 2 (pg. 27)^[1]:

"Birdo thinks he is a girl and likes to be called Birdetta. He likes to wear a bow on his head and shoot eggs from his mouth."

This statement applies to all translations of the title. In Japan, Birdo is portrayed as a male who believes she is a female and prefers to be called by a nickname, "Cathy", rather than her real name "Catherine". As recently as Super Smash Bros. Brawl, Birdo's Trophy description describes the character as "gender indeterminate", and uses the pronoun "it" rather than gender-specific pronouns such as "he" or "she" (although this is technically politically incorrect^[5]). However, Nintendo of America and Nintendo of Europe usually refer to Birdo as a girl.

The confusion surrounding Birdo's gender has also been addressed in a light-hearted matter, such as when Popple pauses before settling on calling Birdo a "dame" in Mario & Luigi: Superstar Saga, and is also shown in the U.S. manual of Mario Golf: Toadstool Tour, where all the female characters have a pink dot behind them, including Birdo. In Super Mario Advance, though, the Birdos in that game had female voices, but the pitch level of the voices varied, depending on Birdo's color. The pink Birdo had the highest pitched voice, while the green Birdo had the lowest pitched voice in that game; the red Birdo's voice had a pitch level that's in between.

In the game Captain Rainbow, Birdo is heard with a deep, male voice which gets high-pitched when she gets angry or excited. Additionally, in the game's second trailer, Little Mac fromMike Tyson's Punch-Out!! speaks about Birdo, calling her a "young lady," only to take a short break and ponder. His final verdict is "Depending on one's view point, she is a young lady." In the game, Birdo's indeterminate gender also forms the basis for a side quest to find proof that she is a girl (which is found, but censored).

Relationship with Yoshi

Birdo (right) with Yoshi in their team picture for Mario Party 7.

She has a special relationship with Yoshi, since they are often partners in sports and party games.

In Mario Kart: Double Dash!!, the two are partners and share a similar Special Item. On the official Japanese site for Mario Kart: Double Dash!!, the description for Catherine states "Catherine appears to be Yoshi's girlfriend... or does that mean boyfriend!?" 

I love how people call Nintendo (or any other giant, faceless corporation for that matter) a family company. Considering their environmental and human right records, I'd say that Nintendo is anything but family friendly. Regardless, my family includes gay people but this is a non-issue to me because my home already excludes Nintendo products.

Everyone saying gay content should be left out because it's not "family friendly" - umm, hello, they're putting in an option for guys to have boyfriends and girls to have girlfriends. Nobody is suggesting that they show gay porn movies in the game. Also, THE GAY PEOPLE HAVE AND ARE PART OF FAMILIES! We don't come from outer space for fuck sake. Jesus. All you people saying about normal etc it wouldn't be family friendly to show the male and female character fucking like rabbits on the first date or on the wedding night, and indeed they don't, they would maybe show holding hands or something innocent and appropriate. It is important this issue because if the estimate of around 10% of the world is made up of gay men and women, that's a hell of a lot of people considering there are over 7 billion humans on the planet.

You are talking marriage in which you can now marry in a few states, but I'm looking at the big picture.  I'm talking about everything.  You want to get married.  You want to be in the military (Don't ask don't tell).  You want to raise kids.  You want Nintendo to put that in their game.... Lol.

Sooooo you want me to me a White House spokesperson, and have everything I say be politically correct? Ok.

"Now I am from Canada, not that any other country isn't nice to live in. In my experience, and in no way is this the majority opinion of everybody, but I feel that Canadians are very tolerant. Now I am not aware of other countries, especially Japan, in regards to the factual statistics that apply to their own tolerance of homosexuality. Would anybody care to shed some light on this innocent question?"

Want to get personal? lol ok what is your education level? Own a house? How about your annual salary? Unless you are a big shot you got no right to be attacking me personally as well as the country I live in, for no reason I might add.

An oppressed minority wants to be treated with the same rights and freedoms as everybody else? How dare the selfish jerks? Seriously, I can in no way understand such a mindset >_>

Oh my gosh what is this world coming to Im sick of gay people thinking they are so special and that its all about them. For a long time there has never been any gay people complaining about this before when the first mario came out and he saved the princess were gay people complaining that peach wasnt a guy. Come on this is ridiculous!!! gay people you are not special, life isnt all about you!! its not nintendos job to boost your low self esteem.

Dear sir, that's why the internet was invented.

Despite my avatar, I'm a person of color.  I don't say " Oh, there isn't a Black African American guy so I'm not buying the game".

Gays sure got some nerve. When will they stop? When will we go back to simpler times of oppression? We treat them like humans and that's what we get. Them asking for equal rights and all. I say enough is enough. Well done, ninty.