Retconned in the US, perhaps. In Japan, he's still considered genetically male from what I've read. I will always think of Birdo as a transgendered. Somehow it make his relationship with Yoshi more interesting. (And yes, according to the lore, they are a couple).
Actually, for years, Nintendo Japan settled for female, likely due to the fact that Birdo isn't even just one single character now. But as of Brawl, Birdo is "gender-indeterminate".
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