a) they had socially transitioned from male to female or vice versa and
b) the game was asking you to identify yourself rather than your character.
On a), there are people who fill the spectrum between male and female, so it's not a given. On b), it's straightforwardly false. But it does make me wonder.
In particular, it makes me wonder if transgender people are any more likely than anyone else to choose a gender other than their own, and thus how likely people in general are to choose their a gender other than their own. I suspect the answer to the latter is that there is a general bias in favour of one's one gender, and I suspect the answer to the former to be no.
To substantiate my suspicions, I looked at a random 50 characters on the ladder. 14 were female - the rest were male. I suspect that reflects the demographic of players of the game at least somewhat, so it suggests there's a bias in favour of choosing your own gender when playing a character. I find this curious in a game where you can be a different species and carry hundreds of potions in one backpack.

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