A tranny? Say it ain't so, Ryu Ga Gotoku.
RGG has been sporting gay flags on their social media for some time now. As for trannies, they've been part of the Yakuza games for years - initially they were passed off a joke meme, like the bearded lady bartender, but now they're just there. Not acknowledged, just quietly inserted.
But that's not my concern, my concern is to what extents they are willing to compromise the setting. I know that a lot of people had a problem with Haruka and the way she grew up to be 'little miss easy-story-hook', going back to even the orphanage. I would argue a relative consistency was maintained even up to Y6 (which did take me significant time to get used to).
I don't know what's going on now. Departing the fiction from Japan entirely is a very hard pill to swallow.