My day one MIGHT be transphobic

Came out as trans to my day one not too long ago, and oh boy I sure did get a response!

So I've known this guy for years, met him on littlebigplanet 3 of all things, so I trusted him quite a bit to actually share this about myself with him.

The first thing he does is ask me to explain, which whatever, I don't mind explaining. He then says he respects me for it, but he won't bother calling me what I want to be called because he'll just forget. I argue with him on this for a bit and he says that I'm making it a big deal. LIKE YOU'D KNOW?

I was debating telling him for MONTHS, so to finally work up the courage to do it, just to be met with THAT in response? It sucked. 

I don't know what to do now. Part of me wants to believe he's just clueless, but he's done this before, saying how it's "not a big deal". I can't just cut him off, so I really don't know what to do.