There was a brouhaha over Kashmir in Windows 95:

When coloring in 800,000 pixels on a map of India, Microsoft colored eight of them a different shade of green to represent the disputed Kashmiri territory. The difference in greens meant Kashmir was shown as non-Indian, and the product was promptly banned in India. Microsoft was left to recall all 200,000 copies of the offending Windows 95 operating system software to try and heal the diplomatic wounds. “It cost millions… Some of our employees, however bright they may be, have only a hazy idea about the rest of the world…”

Spanish-speaking countries got it even worse:

A Spanish-language version of Windows XP, destined for Latin American markets, asked users to select their gender between “not specified,” “male” or “bitch,” because of an unfortunate error in translation.

And the Saudis got their burkhas in a bunch over computer games:

Another social blunder from Microsoft saw chanting of the Koran used as a soundtrack for a computer game and led to great offence to the Saudi Arabia government… The software giant managed to further offend the Saudis by creating another game in which Muslim warriors turned churches into mosques.