The writing was on the wall when they removed some obscure tranny joke from GTA 5 in an update a few years ago, well after the game has been released.
Thankfully, they never touched the 7th gen versions!
The thing was, it was half assed. They removed some of the tranny stuff (I think just crossdresser NPCs), but the gay bar in Los Santos that you can buy (Pitchers) still has the "Trannies Welcome, Straights Not So Much" on the window, and the radio news reports still have people saying tranny as well.
The writing was on the wall when all the original people started leaving the company one right after another, Lazlow's gone, 1/2 of the Housers is gone, Benzies is gone, I think one of the major mission designers since Vice City left, more and more people from when the company first started having major success are leaving. It's extremely sad. In my opinion, Rockstar was the first western game company to really outdo Japanese companies in terms of being a mark of excellent quality. Their advertising campaigns from GTA III to even GTA V were excellent, some of those trailers are art in themselves honestly. Manhunt is still a game that's never been replicated in being that sort of grimy industrial game that feels like you accidentally downloaded CP on Kazaa in 2002. It's great. The sequel blows though.
Also, for a company that had a disco station in GTA IV that had Patrick Cowley, Sylvester, Skatt Bros, and other extremely faggy dance music on top of Karl Lagerfeld being the host, along with the Bernie Crane missions where you beat up people that were harassing him for being gay, to have to do this stupid HR department way of saying you don't hate gay people is just so embarrassing and it's not even needed in the first place. You'd have to be an idiot to think that company was genuinely hateful. It's silly humor. It's jokes everybody used to make without actually being bigoted. Now nobody does those jokes, and most people actually hate fags and trannies a lot more than they did a decade ago. Anybody happier? Do people really think the auto place in San Andreas being named "TransFender" and the Vice City mission where the congressman crossdresses with Candy Suxxx is why people hate trannies now? Do people still try to say jokes = hatred even though it's never been the case?
I mean this, Reni Wassulmaier is seriously a better and much more likable representative of the transsexual community than anybody who transitioned IRL after 2014. I beat VCS/LCS last year and he/she's in both, and if anything it's a more positive portrayal than anything now. He's just some artsy pervert and not some Doom speedrunner which is what most of them are now, but we all know that.