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DirtyP2002 said:

The DLC was the smartest move MS could have done.

  1. it was a loan --> MS has a pile of cash, around 20 billion so 50 million won't hurt them at all and it is cash they will get back anyway
  2. The Lost and damned was downloaded more than 1 million times --> more than 20 million USD revenue on Xbox Live and the 2nd DLC is still coming
  3. They showed the world that they got the "superior" (I know...) version of GTA IV and advertised this well. GTA was heavily associated with Playstation, now everybody knows that this is one the 360 as well.
  4. This was an important step for digital distribution and a big plus for Xbox Live

Sony would have done the same, but they don't have this pile of cash.

You are grossly exagerating it's importance. The average consumer probably had no idea it had DLC when they bought it, I never saw it advertised anywhere before the game was released, only talked about on game forums. And I don't really see how it did anything special for DD...

If it was a 50m dollar loan, Rockstar lost money on this DLC, seeing as how they would have to pay back Microsoft. If Microsoft covered the cost of development, then they lost some money.