but wikipedia does seem to blame the Armedians or Hittites....
"Indo-European
Many Indo-European languages, but not English, provide archetypical examples of grammatical gender.
Research indicates that the earliest stages of Proto-Indo-European had two genders (animate and inanimate), as did Hittite, the earliest attested Indo-European language. The classification of nouns based on animacy and inanimacy and the lack of gender are today characteristic of Armenian. According to the theory, the animate gender, which (unlike the inanimate) had independent vocative and accusative forms, later split into masculine and feminine, thus originating the three-way classification into masculine, feminine and neuter.[47][48]
Many Indo-European languages retained the three genders, including most Slavic languages, Latin, Sanskrit, Ancient and Modern Greek, German, Romanian and Asturian (two Romance language exceptions). In them, there is a high but not absolute correlation between grammatical gender and declensional class. Many linguists believe that to be true of the middle and late stages of Proto-Indo-European.
However, many languages reduced the number of genders to two. Some lost the neuter, leaving masculine and feminine like most Romance languages (see Vulgar Latin § Loss of neuter gender. A few traces of the neuter remain, such as the distinct Spanish pronoun ello and Italian nouns with so-called "mobile gender"), as well as Hindustani and the Celtic languages. Others merged feminine and masculine into a common gender but retained the neuter, as in Swedish and Danish (and, to some extent, Dutch; see Gender in Danish and Swedish and Gender in Dutch grammar). Finally, some languages, such as English and Afrikaans, have nearly completely lost grammatical gender (retaining only some traces, such as the English pronouns he, she, they, and it—Afrikaans hy, sy, hulle, and dit); Armenian, Bengali, Persian, Sorani, Ossetic, Odia, Khowar, and Kalasha have lost it entirely.
On the other hand, some Slavic languages can be argued to have added new genders to the classical three (see below). "