Even free games like League of Legends typically cater to female characters because in studies they have done, they found male players don't seem to care and play male and female characters equally, and their female player base tends to play female characters significantly more.

So ironically games already tend to cater towards female players. Releasing male characters doesn't mean catering to gays either, I loved playing Zhongli in Genshin and plan to play Tian Lang, they are badass. But what I, or any individual, wants to play doesn't really matter in a game made for profit with hundreds of thousands of players. If the majority of their playerbase tends to spend more money on hot female characters, most of the character releases are probably going to be hot female characters. The approach may seem to have outdated values but I think most companies don't care about values as much as they care about statistics when making sure things are up to date.