Back when the Xbox 360 first launched, rumor had it that Microsoft was going to put out Halo 3 the day the PS3 was released to stifle sales of Sony's new console. Well, it turns out Microsoft now has a little something else up its deep pockets: a deal with Rockstar Games to bring out Grand Theft Auto for the Xbox 360 simultaneously with the PlayStation 3 version in October 2007, along with episodic content on Xbox Live. Previously, the franchise title was always released first on the PlayStation while Xbox owners had to wait. Audible gasps were heard in the crowd at Graumann's Chinese Theater in Los Angeles as Microsoft's Peter Moore made the announcement right after trotting out an HD-DVD peripheral that will be available during the holiday season. Senior Associate Editor Dan Ackerman is at the press conference and will have full details shortly, but it looks like the Microsoft-Sony war is turning into a real bare-knuckle street fight.