My answer to the question above is no, it is not. Which leads me to my main question, why is it censored on the game chat? I accept that it can be used to offend others and blah blah blah but yeah, if you are going to censor gay you have to censor bisexual, straight, transgender........................................................ you get the idea, just dont think it should be censored, if you disagree let me know in the comments :D
The only reason it is censored in the game chat is because of the ability for it to be "abused." Someone could say to a player "you're gay" and have it be degrading. If people didn't use "gay" as another word for "stupid" or "dumb", then I doubt it would be censored. It still shouldn't be censored imo, but that is the reasoning for why it is.
Gay either means happy or guys likes guys. Calling someone gay could mean a couple of things, it's like when you call someone retarted. You call people these things to make yourself feel good, but it does nothing but make the other person upset. Calling someone gay in happy ways is not offensive but saying it in the other way could make someone uncomfortable.
It's easiest to censor it altogether, that may sound rude. But it's the best option because it can be used as derogatory.
*and lesbian* Anyways, people do use "Gay" to harass someone. http://www.urbandictionary.com/define.php?term=gay If someone calls me gay, I just say "Yes I am happy!" People aren't going to yell at others "BISEXUAL!" to offend them. Neutral. I do think if one sexuality word gets censored, the others should too. Neutral for now.
Gay can be an offence but at the same time it might not. You must think how you want to preform the word, some people are young and sensitive so it's better just to forget about the word.