As someone who has no life from playing online fps's, both services have their ups and downs.
PSN- pros
uses dedicated servers more often than not (less lag, no host advantage)
it's free
smooth and organized interface
nicer community (more europeans)
original psn titles
cons-
smaller network
not enough of my friends have a PS3 (I'm in the U.S.)
Not enough content
lack of cross-game voice chats and invites
Xbox Live-pros
huge community
broad selection of games with more good and bad games compared to the psn
gives amateur game devs a place to reach an audience
more features
more profile customization
Easier to find your friends in the U.S.
cons-
clunky interface with too many menus to go through
often lags and has host changes
it's 50$ bucks a year
uses "microsoft points"
The deciding factor that outweighs everything and deals with the very root of online gaming is the server stability or inversely the instability. If I have to worry about that, then it directly takes away from the fun. Try sniping in halo when your opponents are skipping around the map at a frame a second. Not going to happen. Often times I'll randomly die and cease to re-spawn for a good minute or two. If I had a choice as to where the 50$ a month went it would be towards dedicated servers. Frankly I don't feel it's necessary for microsoft to charge to keep the service running. I'm almost sure that it's strictly for the sake of profit and they're laughing at the fact that they can get away with it but whatever- I just want to play Halo. As soon as Resistance 2 comes out I won't have to pay anyone.
