Buisness Week spoke with Microsoft in regards to the new Master Cheif character modification for Unreal Tournament III for the PlayStation 3. Microsoft attorney Don McGowan had this to say about the situation.
"Actually it's nothing more than the Game Content Usage Rules...in action. When these were developed, people all thought they were focused on machinima. The truth is that while they do address machinima they also allow for a lot of other things. Mods like this are one of them."He continues on, getting more personal.
The developers aren't selling the mod, they're not monetizing Microsoft's IP, they're just creating something to share their love of the Master Chief on a new platform...And no one is taking characters from PlayStation games (do they even have any games?) and putting them on our platform..."Oh no he didn't!". Come on Sony, lets here a good comeback for the guys at Microsoft. Perhaps nobody is taking characters from PlayStation games and putting it on the Xbox 360 because they don't allow community modifications.
[Microsoft Fine WIth User-Generated Master Chief on PS3]