Iwata said:
Edit: Oh yeah, and PSN is miles ahead of X-Box Live. And free, too.
Kind of depends what your looking for. PSN is free and you get to access the actual internet (which is pretty useful at times) but anyone with a PC can do just the same and a lot better. The market place has some nice features and I like the old PSone games you can get but I'd say (IMO) XBL is better. XBL has much more on offer, the market place is much bigger and has more variety, it's more user friendly, easier to navigate and look better. The down side is the pay but well, £5 a month isn't all that much out of your wallet (this is coming from a student) and it's well worth the price.
I do like PS Home... it's a nice little feature to mess about with but ultimately there's nothing much you can do on it other then walk around shopping and playing mini games.
As far as consoles go, well they both play just like each other, the graphics are practically the same and they all pretty much play the same. The Xbox has better backwards compatibility (The PS3 no longer supports it so winner by default) and you can play music while in game along with downloading music straight on to your Xbox 360 via disk... which I don't think you can do on the PS3 and if you can I haven't figured out how. The PS3 makes it mandatory to download every game you put in, which is a bit of a pain, while the 360 grants you the option to. The PS3 on the other hand tends to have more memory and doesn't seem to over heat as fast.
The PS3 does act as a blueray DVD player too which is also a bonus, though I haven't tried that out yet given how much Blueray movies cost. The Xbox 360 can be plugged into a monitor for HD support without having to buy an HD T.V... it's not as good as HDMI but it still looks beautiful. Overall they are just as good as each other, each have their pros and cons... just comes down to which exclusives you want best... or if you save your pennies (like I did, and it took a long, long, long time to save those pennies

) you could just buy both. The 360 tends to be cheaper but the PS3's have come down in price a lot putting them in a reasonable price range.
Ho and before I forget to mention it, the Xbox 360 has the RROD which if you kept the box and receipt along with your warranty still being valid, Microsoft will fix or repair for free. You don't have that for the PS3 (as far as I know) but Sony will not fix or repair for free, but most retailer allow you to by insurance for your consoles for a small sum of money (about £35 at gamestation).