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Words Of Wisdom said:
The Ghost of RubangB said:

There's also a trans character in Streets of Rage, that was supposed to be male in Japan but female in America.

You have that backwards.

Her name is Poison. She was a girl in the original Japanese version and wore skimpy clothes. When they localized the game, the reaction to beating on women would have been too negative so they changed the outfit a bit and retconned her to a transexual.

Aw crap.  Well I'm definitely more well-versed in the LGBTQ history of Nintendo than of Sega.  That does make more sense though, to get rid of the woman-beating.

With Birdo, it was just... Nintendo felt America wasn't ready for a transgendered character, so they went with a full sex-change?  I guess America's ready for transsexual dinosaurs but not transgendered dinosaurs?  I wish they would translate Captain Rainbow to English, because Birdo's gender confusion is actually a plot point in the game.