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Onyxmeth said:

I think Live is better. I was a big fan of the arcade scene, and Microsoft has done admirably giving that experience in content over the course of the last few years. I like the party system, I plan to get Netflix soon when the movie parties happen, I don't use cross game chat too often but that has more to do with my friends not being on as much as they used to.

It's all opinion though, and there's no definitive answer here. The only problem I see with the PSN being better argument is the fact that it's free. So what? Something being free does not change the service being provided. It seems as ridiculous as someone saying Yaris, Dash of Destruction and Aegis Wing are the three best games on Xbox Live because they're the ones you don't pay for. The quality does not change based on the price. All price does is tell you whether the quality of what you're purchasing is worth it. It doesn't change what you're getting at all.

Price plays into the 'Value' of the service, and what you get for your money. Granted, it doesn't determine how good the service is, but when comparing services surely Value has to be taken into account?