360 is cheaper, has far more good games (as long as you dont own a powerful PC), an excellent online service and a limited 3 yr warrenty. the major downside to it is the hardware is terrible unreliable, less so with the newer machines but the problem still hasnt gone away. HDD size is limited (unless you buy the overpriced elite) and you cant upgrade without opening up a new world of pain.
PS3 plays BD, has more japanese support, especially SE. No real hardware problems but still lacks a decent library of games. The online serivce is free but as with everything you get what you pay for. Hard drive installs are getting increasingly annoying but I think thats just something we will have to get used to, especially in the next generation. HDD easy and reasonably cheap to upgrade.
I have both machines (and a Wii) and I do find the PS3 more appealing, mainly becasue Im terrified my 360 is going to die at any second, again. Im not what you would call a heavy gamer and 3 or 4 decnt titles in my taste would be fine per year, but If i was the type of gamer that wanted a new game every week I think I'd get very bored with the PS3.
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