The Short Version
There's not much difference between the two systems, in the grand scheme of things. You really can't go wrong with either console. Look at the exclusive games for a system, see which games on the list make you drool, and pick that one. Both systems have HDMI ports for your HD TV. The best models for most people are the Xbox 360 (aka Pro or Premium) and the PS3 40GB. Once you add in the cost of a year of the Xbox 360 online service (you want the Gold pay version and not the free Silver), the prices come out the same: $400.
Which Xbox 360?
Don't buy a used Xbox 360; you're asking for trouble. Don't buy the bottom-of-the-line Xbox 360 (the Arcade model); it has no hard drive for downloaded games, etc. That leaves the no-suffix 20GB Xbox 360 (also known as the Pro or Premium) and the 120GB Elite, at $350 and $450 respectively. If you plan on making your Xbox 360 the center of your media universe and filling it with tons of movies, music, etc. etc., then sure, drop the extra hundred bucks. For most people, the Pro is the better choice. Add another $50 or so for a year of Xbox Live Gold.
Which PS3?
Right now, the only PS3 that Sony's shipping is the 40GB ($400), which is fine and good but won't let you play PS2 games. If backwards compatibility is important, wait for June and get the 80GB bundle with Metal Gear Solid 4 and wireless DualShock 3 controller ($500). Or just buy a used PS2 from EBGames.com for $80, or for less from Craigslist.
Buying a PS3 used should be OK, if it's not too beat up. The 20-, 60-, and 80GB models are all backwards-compatible with most PS2 games. Additionally, you can install a larger laptop-sized hard drive from Newegg or the like in a PS3; a 160GB 5400 RPM drive is about $70 as I write this. (The Xbox 360 HDs are proprietary and more expensive to upgrade -- $180 for a 120 GB HD.) The PlayStation Network is free.
The Deciding Factors
The in-game differences between the two systems, graphically and so on, are relatively small. So the choice mostly comes down to other factors. The big ones:
- Which exclusive games make you salivate the most?
PS3 exclusives
Xbox 360 exclusives
- Are you going to play multiplayer games online? If so, with strangers or friends? If friends, which systems do they have? If strangers, Xbox Live has around 12 million subscribers, and the PlayStation Network around 3 million.
- The PS3 plays Blu-ray DVDs. Blu-ray DVD players still cost a ton. So hey, free Blu-ray player.
- The 360's been out longer, so it has a larger back catalog.
- If you get $400 version of the PS3, you don't get to play previous-generation games. The $350 Xbox 360 (+ $50 for Xbox Live Gold, remember) can play over 400 games for the original Xbox. Sure, they don't look as good as current games, but you can find them cheap cheap cheap. Even the bestselling original Xbox games are available under $10 (or $5!) used.
Some Journeys You Must Take Alone
If you read this far, wow, bet you're unsatisfied! There's just no clear winner that massively crushes the other. It basically comes down to what features are important to you, and I really can't help you with that. Other than coin-flipping, your best bet is to probably make some notes on which PS3- or Xbox 360-exclusive games sound good, and hit YouTube or GameTrailers.com to check out the trailers for 'em. Tally up each side, and there's your decision. Unless you really want Blu-ray. Or BioShock. Or all your friends have the other system. Or -- well, good luck to you. Let us know what you picked in the Discussions area!