A friend of mine wanted me to post this for him. He once worked with Microsoft, and wanted to shed light on this issue.
"As someone who has worked with the video game industry and video game PR, this is a very big deal. While the comedian was not part of Microsoft the company, he would be technically called a "third party partner" in industry terms. Ergo, they picked him out, payed him, put him on stage and endorsed him with their brand and products. At that time, in PR terms, he was representing the Microsoft brand publically, and thus is a reflection of their company especially to people who do not know any better. Since Microsoft is now one of the biggest players in the video game industry to the point where at one time they WERE the industry by brand power alone, what their actions cause will convince the majority that this is what the game industry is like in general, with cherry picking supporting evidence like Rashid's public posts not helping.
Even if they had no idea he would make such a stupid action to blemish their brand, Microsoft could have done what I've seen Nintendo do (but they are usually smart enough in planning they rarely have to) which is to have at least one Microsoft rep on stage and as soon as that flew out to yank the guy off the stage, put a better rep from the company asap and apologize in person to the lady and the audience afterwards for the mistake. It would be a blemish but would be smaller and less out of control than it is now. What's worse is when you look at Microsoft's track record, this is another example telling the industry that Microsoft's left hand does not know what the right hand is doing. If they are having base problems like this with 3rd party partners and things like "nobody lives in a submarine", "buy a 360 for no DRM" and "DRM is hard to get rid of, give me the mic" that gives a hint that the entire company is this unorganized and messed up, further tarnishing the trust between the brand and the gamer."