The candidates ranked in order from best to worst based on my opinion:

Sony:

1. Resistance 2

2. Little Big Planet

3. Socom Confrontation

4. Afrika

5. Valkaria Chronicles

360:

1. Gears 2

2. Fable 2

3. Banjo Nuts and Bolts

4. Left 4 Dead

5. Infinite Undiscovery

My thoughts:

Resistance 2 looks like it will be a good game.  I am not certain if it will be unbelieveable or trend setting but it the visuals from e3 looked good. 

Little Big Plant will be the best platformer of 2008 IMO.  I was really impressed with this yesterday.  I thought Banjo would be much better but after seeing some gameplay I think that it provides so much innovation that cannot be ignored.

I didnt hear or see much of Socom and as such it is only here do to brand.

Afrika and Valkaria Chronicles I am intrigued by but have yet to see to much on these games.  I am not too sure what is coming Sony's way this year but feel free to list games that you are excited about.

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Gears 2 will be the biggest title this holiday season and righly so.  I was blown away with the gameplay footage shown and really believe that this titled has been fine tuned and polished.  The visuals look stunning and maybe the best of this generation.   

Fable 2 I am most excited about.  I think this game maybe the most innovative game this generation based on what I have seen with the pub games and orb co-op element. 

Banjo looks great and will be the  best platformer avaliable on the 360.  I think LBP will be the best of the year with Banjo a close second.

Left 4 Dead will be the sleeper hit of 2008.  If you don't believe me remeber who developed this game (Counter Strike Source anyone?).  I think it has a shot to be a top 3 XBL game, lets hope the single player is great aswell.

Infinite Undiscovery I wont probably get.  I am more inclinded to get LO or Last Reminent this year but it appears that many are excited about this game.  Hopefully it turns out well and I will change my mind.

My choice is the 360 for variety and because Fable 2 and Gears 2 are in my top 5 games of this year.

 I am to lazy to count :D

It's a push, IMO. I think 360's is a little more well-rounded while Sony seems more shooter-heavy with some (awesome) oddball stuff. LittleBigPlanet destroys all!

 No Afrika mention? Psh we all know that game is going to be a 10 million seller.

ps3

Sony

I like the 360s lineup WAY better.

Well, that's part of the oddball stuff. Though I'm a little more jazzed about Aquanaut's Holiday than Afrika after finding out Afrika isn't supposed to be free-roaming.

Still looks nice. And LOL @ 10 million seller... good one.

It depends.

If you're talking the end of 2008, the Xbox 360 takes this battle easily.

Next year is tougher. As per the last two years we've had Sony pimping out their future line-up far more than Microsoft has needed to.

Microsoft based on my personal preferences. I am a jrpg and banjo fan, and I just don't really understand the appeal of Little Big Planet and I'm not into console FPS games so the SOCOM thing did nothing for me.

Edit: Trying to be objective though, I think they look about even.