Gears 2 has pretty much achieved the max potential the 360 has in store. The PS3 games however, are still not using all the spus available and I seriously doubt there will ever be games this gen using all the spus. Still it's not good to judge a game only by its graphics, you'll need to look at the physics and the AI. There's no doubt in my mind that 360 games can look as good as the PS3 games. What I think the PS3 can do better is in terms of physics processing and the AI processing. Although this will be hard to optimize for the PS3's architecture and most of the time, the devs will just take existing algorithms that were developed for the x86 architecture. I'll have to say, I still haven't see a game (even MGS) that had mindblowing physics and AI, but I know the PS3 is definitely capable of much more advanced processing.
"In the end, you're always on your own."
~ Squalll Leonheart
