Star Wars: Knights of the Old Republic had a lesbian character, with a fully developed romance with the player. Devs were forced to nix it, still there but requires a lot of work to unlock. First gay character in Star Wars canon, although I guess Disney owns our imaginations and that doesn’t count anymore.
Jade Empire is another BioWare title that you can be gay in - if you play as a man, there is a male romance option which basically requires a guide to do right. He won’t give you a hint there’s an option until you actively piss off every female romance option.
That was gay gaming until the 2010s. We couldn’t get married until the Sims 3.
Yeah, Hollywood pandering is annoying and most of the time hollow. “The henchman from Beauty and the Beast is gay now!” But being able to make my Skyrim dude marry another Skyrim dude is great. I was early in transition when the Dragon Age with a trans guy came out - in a world where I was this alien in-between thing people didn’t understand, having this world where I could be normal was wonderful. Heck, Old School RuneScape upgraded their quests so you didn’t have to change your character to female for a quest and could be gay - I cried like a silly idiot.
Video games are escapism and queer people deserve escape too. There are enough stories for everyone.