Uncharted, Killzone, or Demon's Souls online it's a fucking joy to play!

i prefer PSN over XBL, mainly because it's free and it offers the same core features, the rest it's just "candy" and not very useful features.

It's the same thing. You fight people online either way. I don't see there being a big enough difference to justify one having you pay 50$.

Yeah I like Live better too. And I'm not a fanboy or whatever, I've extensively used both services. 

PSN is great but I hate the lack of cross-game chat and how long it takes to download/install updates, demos, etc.

$50 every year.... over a 5-6 year console life span... = $250=$300

youre basically paying the price of another whole new console just to play on XBL!

Live, as in game demos, Live arcade games and pretty much everything is all free dude. You only pay if you want to play online, which sucks anyway (I think I'm too old school to get into online gaming...).

No preference personally.

Live is definately better executed in terms of how its integrated to the OS and games, but the actual difference when it comes to playing (i.e. once you're in the game) is zero in my experience.  Online with Black Ops for example plays exactly the same, and just as reliably, on both.  Live does offer better integration with friends to actually group up and play together, no doubt about that.

I do therefore think that Live probably, for online focused gamers (which I'm not) offers better friend management/interaction, but for me that makes almost no difference as the bulk of my gaming on console tends to be offline with more casual online gaming.

For me Live doesn't offer enough over PSN to be worth the money (as in I pay it but don't feel I'm getting much for my payment vs PSN).  My teenage son, who is probably more online centric, does prefer that element of Live over PSN - with the added benefit I'm paying for the little bugger so he's definately getting value for money!

To be honest the main differences, better download/install, cross game chat and OS integration should be easy to match on PSN (assuming no patent infringement, although TBH the idea cross game chat can even be patented is something I find crazy) because the problem isn't the online element (that is actually identical as I noted) just Sony's persistance on not giving it's Western arms more control of PSN/Online design.  I really wish they would let SCEE and SCEA take over that element of the OS as I'm sure they could do a much better job and quickly get the friend/party elements improved pretty quickly.

I can't believe people state the price as one of the main reasons, oh well each to their own I guess.

I prefer XBL over PSN for the same reasons as you, but I just wish it were free. However, I don't get logged out of PSN randomly, and I don't really feel PSN is as empty as people make it out to be.

@OP good for you buddy...btw, who asked you about your preferences?

empty as in nobody has mics because they dont give it to you free like xbox