Ive heard rumors thar crytek is developing their UDK equivalent. If/when it gets released, will we be able to play our mods on our xbox's and ps3's?

no

If they do end up making and releasing a UDK equivalent, to play the things you develop on consoles, you'd more than likely need the dev kit for the console in question (obtained from Microsoft/Sony).

damn. i completely forgot abt the console dev kit. nvm then.

I presume you got this information from Develop-online? The case is, yes, they are planning something, but we don't know what. It may not be available to us just yet, but until then, you can only wait.

The LiveCreate feature allows you to test out your games on 360, PS3 and PC, all simultaneously. This isn't going to be available to us, as this is a game developer tool.

inside sources told me [i]unofficially[/i] that the plan was to try and get an sdk out prior to the release of crysis 2. If that is still in the plan I do not know. I was told this back in march at gdc.

Hopefully they are still working on that.