Having read though all of that there are two points I would like to add.
1.) As awesome as MGS4 is, it is a gamer's game and is kind of irrelevant to this conversation about why GTA 4 will ship consoles - the csasual market, GT5, however, is a much more recognised casual brand.
2.) As soon as the PS3 passed the X360 in sales, it will become the lead format with developers. At that moment many multi-format games coming to X360 will be dumbed down ports. If games are being designed with the Cell Processor, Blu-ray and an HD as standard in mind they will need to be altered considerably to work on the X360's inferior tech. Before you all jump, I love my X360... not the machine, it is a cheap peice of $hit, but the games and online are awesome.
Anyway, that is the bottom line drive of MS's panic. If the PS3 catches up, it will dominate so MS has to keep ahead as long as possible by any means necessary.
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