May be used if one does not know the gender of the person in question, to disguise a persons gender, or when refering to people who not fit the typical labels of 'he' or 'she'.
Tony: *unsure as Alex is a unisex name* Oh, how does xe look?
2. Lisa: Oh, you got a crush?
Mary: *Is a closseted lesbian* Yeah... Xe's really nice.
3. Lee is genderqueer. Xe's great at doing cartwheels.