The development of digital reality has enabled video games to shape social norms and attitudes. Considering the growing representation of LGBTQIA+ characters in games, this study examines how their roles and representation impact the attitudes and reactions of LGBTQIA+ players and the broader gaming community. The empirical research was conducted through two online surveys, each completed by 115 participants from Croatia, Serbia, and Bosnia and Herzegovina. One survey was targeted at LGBTQIA+ players, while the other was aimed at straight players. This study analyzes empathy and acceptance of LGBTQIA+ characters within the gaming community among straight players, while simultaneously exploring feelings of safety, sense of belonging, identity, and inclusivity among LGBTQIA+ players. Behavioral intentions, representation, portrayal, satisfaction, and virtual harassment were examined in both groups of respondents. A Partial Least Squares Structural Equation Modeling (PLS-SEM) model was used to analyze the impact of representation and portrayal of LGBTQIA+ characters on player satisfaction and behavior. Data analysis shows that greater representation of LGBTQIA+ characters enhances the gaming experience for all players, while inclusivity does not significantly improve the experience for LGBTQIA+ players. Negative portrayals of these characters harm the gaming experience, while appropriate portrayals positively affect all players but are not crucial for straight players. Acceptance of LGBTQIA+ characters strengthens the sense of belonging among LGBTQIA+ players, while virtual harassment diminishes that sense but does not affect security. Positive portrayals increase empathy. The research findings reveal how LGBTQIA+ characters influence player satisfaction and behavior, which could be critical for the development of games that offer a more inclusive and consistent portrayal of LGBTQIA+ characters.