As a guy who works in retail, I can tell you precisely how conversations like this will go for me.

Customer: Hey, I want to get Grand Theft Auto IV.

Me: Okay, it's available on the Xbox360 and the PS3. The 360 version has additional content for it though. Extra episodes.

Customer: Oh. How much do those systems cost?

Me: The 360 is 400 dollars and the PS3 is 600.

I don't think conversations like that will be very rare, frankly. 

I think the console price would settle it anyway don't even need to mention the additional episodes lol

50 million, that cant be serious. Not even MS is that dumb.

They could have funded an entire new GTA game for that much.

50 million? Shit. No wonder GTA4 isn't a PS3 exclusive...

This is basically Sony's game, guys, which is why I personally find it so intriguing to see Microsoft beating them at it.

Sony was the first company to succesfully open the wallet to pull out exclusive titles. Paying direct cash, paying for development, advertising... its worked wonders for Sony in the past.

I just was saying in another thread that Sony needs to change their model, because Microsoft plays that game too, and they have much deeper pockets. Then I come across this. 

Sony could drop the price of the system (which costs money), pay companies for exclusives (ditto), or buy up development houses (ditto), all of which seem to be the core of their current plan -- but they need to do something else, because if their main strategy is money and the willingness to burn it, Microsoft has them beat in spades.

Microsoft is going to make money back on this anyways, $25 for each add on and no doubt that 1mil plus gamers will get it. Plus the additional software and more customers that will spend $1000's on Microsoft products over the life of the 360 this is the best deal they could of made. Sony should buy more stuff for GTA too, ths best selling franchise ever, on modern consoles. It would be a stupid move not too.

I'd agree, although one could also see people saying: "Well, I played all the other GTAs on Playstations.. I think I'll stick with that," which I'll agree was unlikely to move too many consoles, but it had a shot. Now there is no question: you get a better experience with GTA on the 360. 

 Hmm, wait for reviews. I think this game will work much better on PS3.

My understanding is that the games are graphically and technically identical, and have the same content in the base game. Have you heard otherwise?

Nope. I didn't. I think PS3 version will provide sharper textures, further drawing distance, quicker loadings etc. Something like Oblivion.