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The 360 at $199 (American) is tempting. However, it's too little too late for me. I bought a PS3 80gig w/Motorstorm & backward compatability for $400 over the xbox pro at $350. My choice at the time was based on three things that may or may not add value to the specific individual.

1. Blu Ray. I was going to get a Blu Ray player anyway, which would have cost $300. So really the PS3 game portion was only $100 a no brainer.
2. I had never owned a Sony console. So getting backward compatability was like getting a PS1, PS2, and a PS3 which was probably worth the $400 in and of itself.
3. Lastly, when I was looking at games there were two exclusives that weighed on my decision heavily. Little Big Planet and Too Human. When I saw early build information on Too Human I was really dissapointed with where they took the game. I wanted the 2001 version that I got hyped on that was supposed to come out for the Gamecube. The new sanitized RPG didn't really suit my gaming style. And as I learned more about Little Big Planet the more I got excited about a Sony Mario Bros.

So if i had the choice today, I'd probably still pay $400 for the PS3 because Blu Ray adds value to me. But if Blu Ray didn't add value to you, and with the discontinuation of backward compatibility, I'd probably reccomend the 360 to most people looking to buy one or the other. I may get a 360, but right now it's not high on my priority list since the Wii/PS3/PC meet my current gaming needs.