GTA IV has looked like it's going to be a killer title to have on either Xbox 360 or PS3. But news from the latest issue of PSM UK appears to indicate that the PS3 version of Grand Theft Auto IV is going to be superior to the one on Microsoft's console. The magazine refers to the lack of a hard drive on the Core version, along with the DVD player as a "restraint".

From TVG.

There certainly seems to be plenty of little details being thrown into the fourth true iteration of the ten-year old franchise, including a wide variety of behaviours from NPCs, and several unconfirmed multiplayer modes, but the article also reveals one of two interesting notions.

Via http://www.ps3news.ca/

Well one would only hope. But idk since most developers are just porting to the ps3 lately and that means they dont take advantage of the cell or blu-ray. Would be a shame if Rockstar didnt, but so far I havent heard anything crazy thats would be different. But lets hope.

Given the power of either system, I would imagine that it would look good on both. Having a HD is always helpful but just seeing the game in high def and having the processing power of the systems must be fantastic.

This sounds familiar, but in reverse with the original xbox and the PS2. Whereas the PS2's hard drive was optional, the xboxs was built in. This meant developers were unable to incorporate the hard drive since everyone didn't have one.
The game makers know that they have more room to work with BR and the fact that the PS3 has the built in HD. So eventually it will be games made with the PS3 in mind then ported to the 360.

That would be the better option. Better to cut down then add I say.