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IMO XBox 360 already has surpassed Killzone 2, Gears of War 2 has better graphics. The textures and environments in Gears of War 2 look superior to the textures and environments in Killzone 2, KZ2 has better lighting and particle effects. But I prefer the graphics in Gears of War 2.
The next Call of Duty game: Call of Duty 6: Modern Warfare 2 will definitely blow Killzone 2 out of the water in regards to graphics.

A very common argument in most flame wars is that the Playstation 3 simply “has better graphics”. I’m not sure where that argument came from; Sony obviously did a good job of marketing the system. However, the argument is entirely false. The Xenos GPU on the XBOX 360 is superior the RSX on the PS3.

Xenos simply has more power - higher fillrate, higher pixel processing power, higher vertex processing power, and better memory architecture. If you look at multiplatform games and contrast the graphics on the two consoles, XBOX 360 almost always leads. Whether they use a higher resolution or higher quality antialiasing, games often look better and/or play smoother on the 360.