After the break we have a video from GayGamer.net where one of their readers created a gamertag of "Gay Boy," went into Halo 3 online, and recorded the effect. The video is not safe for work because unlike the FOX news piece, there isn't a censor. And just to be clear, Xbox Live is a great service, but boy are there a lot of people using the anonymity of the internet and children without parents on there. Don't be surprised when the Halo 3 "mute button" is named the invention of the year in our '07 wrap-up posts.
Update: Xbox's Major Nelson (Larry Hryb) made a statement on the GayGamer video.