[steev]

It will likely have a negative impact on your initial job search; however, once you get a job it will become irrelevant. A lot of times HR systems filter out candidates below a certain GPA threshold. As a hiring manager, the low GPA would signal to me either lack of ability or lack of focus, though I'd be more concerned about the focus/work ethic issues than ability issues.

My advice: whatever you do, don't make any excuses about why your GPA is low. If asked, I'd just stick with the side-projects comment, but don't treat it as a good thing (i.e., you probably should have spent less time on side-project and more time focusing on studies, etc.). I would also make sure those side-projects are extremely impressive.