Once Shadow Kanji is defeated in the game, Kanji accepts that his gay alter-ego is an essential part of his personality, but he does not make any outward declaration or revelation that he is gay or remotely bisexual. As the game progresses, Kanji must deal with jokes regarding his sexuality and un-manly artistic hobbies, in addition to his crush on a male character, who turns out to be a cross-dressing woman.

Intentionally and perhaps tellingly, especially when we examine homosexuality within a greater social context in Japan, there is no concrete conclusion provided by the game regarding his true orientation.

Gamasutra - Opinion: Sexuality And Homophobia In Persona 4
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