August 3rd, 2007 - GTA4 was originally set to release in October of this year, but Take Two has just announced the game has been pushed back to the companies fiscal 2008 Q2, which ends in April 2008. "Additional development required to complete the game" was cited as the reason for the delay. Take Two did not go into further details regarding what the technological issues are.
Take Two stated titles such as BioShock, Bully: Scholarship Edition, Table Tennis (Wii) and 2K Sports titles will carry Take-Two through the rest of the year, including the busy holiday season, and furthermore Rockstar have recently announced that they will appeal the Manhunt 2 banning in the UK, and if succesful the game may make release for 2007.
The company is "highly confident" that it will be able to deliver GTA IV in final form by the announced fiscal Q2 period.
With so many great games still coming out this year, it might have been a smart business move to delay GTA4 to early 2008 when new game releases will be much slower, while of course GTA4 is a huge franchise, it would have been going up aganist Halo 3, and with the sales potential of GTA4 essentially limited to the Xbox 360 userbase (PS3 userbase is still small), many 360 owners may not have bothered with GTA4 after just purchasing Halo 3.
Source: Next-Gen