If
this report is correct, console mod chips are now legal in the UK, after the court of appeal ruled on Wednesday that the devices do not circumvent copyright protection. The judgment was awarded when a seller of the chips appealed against his conviction, and got all 26 counts quashed, with legal costs awarded.
The successful argument seems to be that the copyright violation has occurred before the chip is used, and not one about the legitimate uses of the chips. It's not clear whether the Trading Standards Agency has much chance of successfully appealing this decision.