Buy a PS3. You will be responsible for a 50% rise in sales in North America if you do

He needs games too. Also imo the arcade is gimped if you want online features.

PS3 backwards compatibility is going the way of the dinosaur.  If it's really important to you, go with the PS3 now.  If not, go with the 360.

Of course, don't let us convince you.  Let this catchy song do it instead:

People will hate me for saying this, but either one is fine for you.

Both have their advantages and disadvantages, but 85% of the games are the same. (including all the games you listed) Get they one that most of your friends have, so that you can play online with them and borrow games.

      LOL, awesome post.  I would get a X360, I have loved it from day 1 and it continues to impress.  The PS3 is a great piece of hardware, but it just isnt living up to its potential.  Just my opinion, dont flame please. 

get a 360 its cheaper and offers the same as ps3. You can get more games with your money.

Get a 360. Multi-platform form games usually get a higher review scores on the 360. Since you like FPS, it's better to get those games on the 360 because of the controller, its much easier to control with off-axis analogue sticks, and online play is much better and you are more likely to get matched up with players of a similar skill level. The exclusive games that I want this holiday season for the 360 are Viva pinata 2, Banjo-Kazooie: Nuts & Bolts, Gears of War 2, and Castle Crashers. There's a lot of other exclusive titles you may like, like Fable 2. You might want to hold off on the blu-ray till the player gets cheaper and the movies too, $30 is way too much for movies. Also netflix says they are looking to get HD streaming movies in the future. Try going to a friend's house or to a store to try out the two consoles and see what you like better.

$600 until Christmas! And you want a video game console? Wow.
Anyway, get the 360. The console costs less, and you can get more used games for less than their PS3 counterparts at EBGames/Gamestop if you are into used games. More games=Win. You ARE a winner, aren't you?

ULTIMATE ANSWER :

- if u want to save money + Netflix deal : go Xbox360
(even if in the long run u have to pay online ... but overall, Xbox360 is cheaper)

- if u want to play PS1/PS2 games + BR player : go PS3

(note : u can wait to get the Xbox360 later (because price drop)
but if u want the 80gb+DS3+MGS4, u should hurry to buy it before Sony stops selling it ...)

On a more serious note, the PS3 has

Some BC
Great exclusives
Great controller
Blu-Ray
Wireless controllers as standard
Wi-fi
Free online

The PS3 has all of the major benefits, it just seems Americans dont care