WARNING: The audio in the linked video is NSFW.
I just came across this post on Joystiq about the problem of trash talk on Xbox Live. Well, the "trash" part is a real understatement. I have a gay stepbrother, and I find it extremely offensive.
Now, I'm not going to say that video games themselves are responsible for this kind of behavior (although I'm sure other news outlets will), but I've encountered some extremely offensive language against black people and Hispanics gaming in Halo 3 as well. I try to make it a point to report anyone being too abusive, both with negative feedback to their profile and a report to Xbox Live.
Come on guys. Seriously, you can have fun without being an a$$hole. It IS possible, as far-fetched as it might sound.
And while I'm at it, Microsoft needs to do a better job educating parents about Parental Controls on Xbox Live. 3 of the 4 people in the Fox interview had no idea it even had Parental Controls. Time to whip out those marketing dollars and put up some ads on MSNBC.com (or some parenting websites, or whatever) about them.