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aTokenYeti said:

Regardless of the final outcome of this, if I am Microsoft I would be immediately beginning the process of withdrawing as much of my operation from the UK market as possible as quickly as possible. You simply cannot allow a market that small dictate global regulatory terms.

They may be small but for MS the UK makes up a huge chunk of their marketshare.  Hell I believe they make up way more than the rest of the EU so its not insignificant to pull out.  I do believe that no matter what MS do, people in the UK will still be able to get a Xbox so it might not be as big of a hit as it could.