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now to respond to the doesnt make sense part.

the way i see it GTA5 represents the next GTA and not the actual 5th game. TT could have went to Sony asking Sony to finance GTA4. Sony could have refused. TT then could have entered into another agreement. one to of let TT use the money earned from 4 to make the exclusive game they owe Sony. All the while getting a loan from MS to be able to finish 4 up and giving them DLC in return