Quick history lesson for those who don't know: there's a character in Final Fight who in Japan was a sexy lady. A sexy lady you had to punch in the face. Her name was Poison.
Fearing this may not go down well overseas, in the West she was turned into a he. It was the same sexy character model, appearing entirely female, but had suddenly been labelled by the developer as a male. Making her one of video gaming's first, and to this day most notorious, transgender characters.
Poison remains a topic of debate not because she is a transgendered woman, but because apparently Capcom has never officially made the character's gender a matter of canon. So there are those who say that, because the character was originally female and only made "male" as a localisation quirk, she's female. And there are those who grew up knowing of Poison as a transgendered woman, arguing that this is how they know the character, so that's what the character is.
There's also, you know, the people who can't handle the fact there may be a sexy transgendered woman running around in their video games.