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Killzone 3 and Halo Reach are easily the two best first party FPS games I've played this gen.
Halo Reach had a pretty decent story a good MP and the visuals were improved upon a whole lot since Halo 3. But on the bright side Killzone 3 had the best visuals I've seen in a FPS along with the best melee system too. The in game MP cut-scenes were great and the gameplay in word word is amazing. Halo Reach did have a better story than Killzone 3 but then again the gameplay in Killzone 3 was amazing and gameplay wise Killzone 3 did topple over Reach (for me). Now if go on to the MP Halo Reach has many different types of online modes including Infection and Firefight but Killzone 3 was more fun for me.

Vote: Killzone 3