Microsoft, for some reason, feels that they need this to compete with Sony. Microsoft isn't scared of Nintendo. Microsoft knows it has its exclusives that won't EVER go to a Nintendo platform. Microsoft though has been scared of Sony for awhile now. E3 sealing the GTAIV deal...going multiplat on day one of release.
I'm sure Microsoft gave tons of money to RockStar to insure this. Microsoft knew how big a GTA title has been in the past with Sony platforms. I think Microsoft is REALLY PUSHING devs to insure Halo 3 comes out this year. They want that title to help boost sales for the holiday season. Why? Because they are scared that if Halo 3 doesn't release, Sony will have the bigger holiday.
Xbox 360 Elite? Microsoft felt it needed yet another incarnation of the 360 to compete with PS3. PS3 after all has already sold the same number of units in the same period as 360 did. Microsoft is trying incredibly hard to influence Square to make a FF13 game for the 360. Why? Because they want to sell the 360 in Japan desperately? Why? Because Microsoft KNOWS JAPAN IS IMPORTANT! Microsoft is constantly trying to play Sony's game. Releasing Blue Dragon and trying to have new quirky titles that the Japanese like. They are failing anyway. But Japan doesn't matter huh? Microsoft says otherwise.
Microsoft is trying its best to lure developers away from PS3. PS3 STILL has a ton of developers, even though it is not selling nearly as well as expected. Here is the problem. And I think Microsoft recognizes this. PS3 has sold over 3 million so far, about the same as 360 sold in the same time period. This IS WITHOUT...good software, being $200 more expensive, no rumble, no HDMI cable, terrible E306 showing, competing with 2 consoles, etc. See, Microsoft had a huge advantage in the 1st 5 months...360 had no competition for the next gen, had a $200 cheaper price point, had great software from the get go, has rumble, has a better designed controller from the original Xbox, had a much better E306 showing than Sony, etc.
But DESPITE ALL OF THIS, PS3 is still on the same sales track as 360. Microsoft is indeed scared of Sony and its PS3.
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