Rockstar Games today announced the second episode of Grand Theft Auto: The Ballad of Gay Tony – exclusively for download on Xbox LIVE. Also, a separate disc entitled Grand Theft Auto: Episodes from Liberty City, which will include both episode one The Lost and Damned, and episode two The Ballad of Gay Tony together.

“Liberty City is the most vibrant game world we’ve created yet. The episodic structure has allowed us to interweave stories, gameplay and atmosphere in a whole new way,” said Sam Houser, Founder of Rockstar Games. “The team at Rockstar North have yet again surpassed themselves, and made something that is both epic and very innovative. This episode’s focus on high-end night life contrasts with the biker gangs portrayed in The Lost and Damned, whilst giving us a lot of new gameplay possibilities.”

Grand Theft Auto IV’s second downloadable episode, The Ballad of Gay Tony injects Liberty City with an overdose of guns, glitz, and grime. As Luis Lopez, part-time hoodlum and full-time assistant to legendary nightclub impresario Tony Prince (aka “Gay Tony”), players will struggle with the competing loyalties of family and friends, and with the uncertainty about who is real and who is fake in a world in which everyone has a price.

Grand Theft Auto: Episodes from Liberty City delivers two games on one disc – the all-new episode The Ballad of Gay Tony and the first episode, The Lost and Damned – together on disc for the first time – for Xbox 360 for $39.99 and will not require a copy of the original Grand Theft Auto IV to play.

The Ballad of Gay Tony will release on Xbox LIVE this fall for 1600 MS points (or $19.99) and requires players to have Grand Theft Auto IV for Xbox 360 and Xbox LIVE membership to download.

We had an interesting conversation with the title being, “The Ballad of Gay Tony,” but will that affect your decision to play it?