Currently Online 
I bought a 360 at launch an was my preferred console for the first 2 years but PS3 has my preference now, what went wrong:
No built-in wifi. 360 ended up in the game room while I bought 2 ps3's, one in the living room for blu-ray and games, and one in the game room.
RROD, it died twice on my, first when forza 2 came out, then again with Mass Effect. Nothing like waiting a month before you can play the game you've just bought.
Live voice chat quality, I could hardly understand my friends, had bad echo's and buying a new headset did not help.
Together with lag and lots of disconnects I decided to cancel gold, it was just not worth paying for back then. The disconnect and lag were probably caused by it mainly using peer to peer connections for online gaming. For example TDU would work fine online until I started a match with others resulting in 90% connection failures.
And a couple issues for the audio/videophile in me: No HDMI on the launch model, limited to 640kbps Dolby digital sound, and an annoying default gamma correction which makes everything look too dark on a properly calibrated tv.
The uncompressed sound over hmdi and free online, just for when I fancy to give it a shot, lead me to buy all multiplats on ps3 over 360. With less and less exclusives for my taste on 360 it has become pretty much irrelevant in my gaming time.
I'm hoping for a great kinect game as an excuse to buy a kinect slim bundle with wifi and hdmi to put in the living room.
