If there are any developmental problems, they would stem from the Xbox 360 version of the game. The PS3 version of Grand Theft Auto IV has been in development longer than the 360 version has been, despite Rockstar showing off the "360" version every chance they get to show off the game. GTA IV's technological "problems" on 360 stem from a couple of things. Unlike last generation where the PS2 did not have a standard hard drive, Rockstar is utilizing hard drive-caching and disc streaming for GTAIV. Assuming that they can actually fit all the content onto a DVD, the disc-streaming isn't a problem for 360 - it's the lack of a hard drive being standard. Microsoft is quite adamant about a game like GTAIV being able to be played by every single 360 owner. It gives them a marketing bulletin point to note that next-gen GTA can be played on a system that retails for $279.
But again, it's extremely unlikely that the "developmental challenges" are a legit excuse, anyway. It's a case of over-ambition and not enough time to deliver that game that resulted in a premature release date. A premature release date to help take a bit of the pressure off of Take 2 to perform, financially.
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seems plausible.
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