Epic just shot themselves in the foot.
I don't know how much the rest of you know about PC Gaming (I'm an expert), but honor and shame are huge parts of it. It's not like it is in Console-Land where you can become successful by being an asshole. If you screw someone over in PC Land, you bring shame to yourself, and the only way to get rid of that shame is repentance.
What this means is the pc gamer, after hearing about this, is not going to want to purchase Gears of War 2 (windows 7 launch title), nor will they purchase any of Epic's games. This is HUGE. You can laugh all you want, but Epic has alienated an entire market with this move.
Epic, publicly apologize and cancel Gears of War 3 for 360 or you can kiss your business goodbye.