As technology improves, and as the content of games expands in terms of breadth and depth, opportunities only increase for representing diversity. In the future, it will not be enough for a character to have darker skin, thicker lips, or a different eye shape. We will have to see different cultures and experiences represented as well.
Those of us who are not white, but hope to identify with the characters we play in games the same as anyone, find the industry to be deficient. At best we have had to settle for ethnically ambiguous characters, often in non-Earth settings, which while fulfilling an aesthetic need still leave players wanting for a more substantial connection. When characters of non-European ethnicities are depicted in video games, it is true that they are often stereotypes.