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PS3:

- gaming (oh how obvious)
- watching HD movies (....but no Blu-rays. I still need to buy a few)
- listening to music (well not while I'm playing of course.....)
- Internet (browser is damn slow, but well most of the time it's to much work too switch the ethernet cables from the PS3 to my PC)

360:

- gaming
- watching DVDs (great upscaler)
- listening to music (even while playing a game. That's what I call advanced technology >.>)