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I would go with the PS3. I have a 60gb bc PS3 and I can play PS2 and PS1 games on it. If you want to play PS2 and PS1 games then make sure you get a PS3 that can do that. The 360 play original xbox games but not all of them. So if you get a bc PS3 then you will have a larger library of games to from from older to new PS games. You don't have to wait for the PS3 price to drop. New PS3's are selling on ebay at $350 and under.