The baby was born a boy. Basically, his pubic area never fused together, so you could see his bladder, etc. Anyway, between the parents and the docs, it was decided to alter his sex and make him a girl.
How awful! I'm sure this little boy will grow up wearing a skirt, but wanting wear pants and act like a boy. When he is grown his friends will tell him he is gay cause chances are he will like girls, not boys, since he is a boy in a skirt. Sad, very sad.