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Basically he's threating to sue if Microsoft doesn't take measures to make sure that anyone under 17 cannot be sold a copy.
Direct quote:
Here’s the deal, Mr. Gates: Either Microsoft undertakes dramatic, real steps, through its marketing, wholesale, and retail operations to assure that Halo 3 is not sold, via the Internet and in stores, directly to anyone under 17, or I shall proceed to make sure that Microsoft is held to that standard by appropriate legal means. I have done that before successfully as to Best Buy, and I shall do so again as to Microsoft and all retailers of Halo 3.
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