WTF is a "futunari," you ask? Well, according to Wikipedia, the term can be used to describe "any hentai [pornographic anime or manga] character that possesses both the traits of a female and the penis of a male." Apparently, it can be used to describe game characters, too.
Anyway, it seems Square-Enix's upcoming title, NieR Replicant, will feature a futunari. Specifically, the hermaphroditic character in question, named Kaine, will act as the protagonist's partner, according to a magazine scan posted over at Kotaku.
One of that site's avid (and educated) visitors kindly translated the text that accompanied an image of the confusing character:
"With the left half of her body infected by a demon, she's what's called a 'demon possessed' human - possessing sexual characteristics of both sexes. Suffering from being bullied since a young age, her resultant rebelliousness and thirst for revenge made her flaunt her feminine appearance beyond necessity. However, her demeanor is far from feminine. Her way of speaking and manners are also quite brutish."
Sounds good to me, although I have to say I'm a bit worried that Square-Enix will neuter (literally and figuratively) this wonderfully bizarre character when and if the title--supposedly a PS3 exclusive--is brought Stateside.