A games developer started this thread on another site. (Not sure if I can mention site. If I'm aloud tell me.)
What follows is a copy and paste of his first post.
360 or PS3: A Game Developer's Perspective
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I try to not get annoyed with all the fanboy comments, all the misinformation about the consoles, etc.
I am a game developer, and I've worked professionally in the games industry for 11 years.
If people are looking for the best console out there, I will tell you my opinion. First, I will not cover Wii as I've not had first hand experience with it as a developer. But from what I've played (I have one) the Wii doesn't cut it for me as a hardcore gamer. So, if you are here reading this, just forget the Wii.
Now, the 360 or PS3. I hear tons of garbage, lies, about both systems. Let me try and set things straight. Please note, I have 1st hand experience on both consoles.
1) Graphics: from my experience and that of peers, the 360 actually has a slight edge with its graphics chip than the PS3 does. But the PS3 can use its SPU to help the graphics. So, visually, you should expect most games to look about the same across either console. It is really a tie, a dead heat, and if you waste time trying to claim either console has superior graphics well, the game industry is laughing at you.
2) CPU power: in theory, the PS3 has the edge. However, due to the complexity of the PS3 it is actually hard to reach those performance highs. Due to the more flexible nature of the 360 cores as opposed to the PS3 SPU's, I have to give the edge to the 360 because it is far easier to reach the 360 theoretical power than the PS3.
3) Memory. The PS3 is segmented, 256/256. That sucks. The 360 has 512Mb unified. That rules. 360 wins.
4) DVD vs Bluray: Many fanboys make a big deal about Bluray, and how it is needed for games. Honestly, it is nice. It is one area that developers can not worry about, and as a result you'll see a PS3 exclusive talking about how big each level takes (2Gb, so on). That is because, basically, they can be lazy with Bluray. They can duplicate data, a lot, to help their load times. They can include multiple languages. But, end of day, I don't believe consumers will see a difference or care about these. So Bluray allows a developer to be a bit more lazy with their disc layout and usage. This isn't true for 360. Developers need to care more about it. It is an issue. But - it isn't a deal breaker. Most developer would honestly tell you, 9GB of game data is a hell of a lot once things are compressed and 360 can compress stuff really well on disc. Load times are slower on blueray, it's a fact. But the PS3 can cache on their hard disk, so that helps. Overall, I would give this a tie... or perhaps slight edge to PS3 only because it means you have an HD video format built into the system.
5) Networking: hands down it goes to 360. Most in the industry think Home is a joke, and PSN is free and people get what they pay for.
6) Price: if you are an HD-hardcore nut, the PS3 is good. If you want the same type of setup with 360 (i.e. buy an HD-DVD, etc) it is more expensive. But...if you are a hardcore gamer, then 360 Premium is the way to go. 360 price is hard to beat for the amount of quality you get, games, etc... PS3 is simply priced too high for a gamer.
7) red ring of death: shouldn't be an issue...most people in the industry don't even talk about this. MS has the warranty in place, and new 360's are fixed. So... it is a non-issue. But, if we have to give a winner, than PS3 wins the "reliability" given they've not been shown to have such an issue (at least yet...knock on wood!)
8) Software: hands down, this goes to 360. More and more people in the industry are doubting the PS3 at this point. It is failing really bad in the market, in all territories. The cost/reward is simply not there. This isn't the PS2. The 360 currently has the best set of games, and it will continue to grow at a faster rate than the PS3. This will not change. If you want games, your best bet is 360. It will gain more "Sony" types of games too, not just FPS Halo clones like the 1st Xbox had a reputation for.
So...to sum up: both consoles are graphically in a dead heat, the PS3 has some advantage with bluray and reliability but the 360 has the advantage with CPU power, memory, network, price and software library.
If you are on the fence, go buy a 360. If you already made your choice, enjoy your system. If you can afford both, then do that.
End of day, as a game developer, I can only recommend a 360 to my friends.