Report and move on.
PC chat is the Wild West, so know that going in.
Console makers are getting more proactive in policing chat. Sony is warning its PSN users that chat lobbies are subject to being recorded.
So—at least on PSN—-reporting people has an impact.
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Few times I’ve not had only receive messages from friend on, the angry hate mail and or illegal solicitation messages are felt with in 10-15 mins tops. Playstation drops the ban hammer mighty quickly when its obvious.