Value for money, the PS3 is the better bargain. Anybody who tells you the PS3 is more expensive is wrong.

40GB PS3 = $399.99CDN
20GB 360 = $399.99CDN

80GB PS3 = $499.99CDN
120GB 360 = $499.99CDN

If you wanted to future proof yourself you would be better picking up a PS3, its going to shine this year, and probably shine even more next year.

Both the PS3 and Xbox 360 have titles worth owning.

PS3 has free Online, the Xbox 360 requires an Xbox Live Subscription.

PS3 has built in Wifi, the Xbox 360 doesn't (If you need wireless)

PS3 controllers have built in re-chargeable battery's, but don't have rumble yet. The Xbox 360 controller uses Double A battery's or you can pickup a play and charge kit for $15, and than re-chargeable battery's for each controller for $8.

The PS3 has built in Blu-Ray which is great for more than just movies. Blu-Ray really gives Game developers more room to develop games. The Xbox 360 has an addon HD-DVD drive which just came down in price to $129.99US

You can install Linux on your PS3 waste of hard-drive space if you ask me, but the options there. Unless you like home-brew)

The 40GB PS3 doesn't play PS2 games, the 80GB PS3 plays PS2 games.

The Xbox 360's have some backwards compatibility which can be argued over being better/worse than the 80GB PS3.

If i was buying at this stage in the game, i would have to lean in favor of the Playstation 3, but i wouldn't buy one today unless your happy with the 40GB. If it was me personally I would wait until Sony announces the 120GB/160GB PS3 and than buy that one when its in stores. Its also suppose to come with Dual Shock 3 controllers that have rumble.

I own a Wii, PS3 and 360 Elite. So i am trying to be as non-bias as possibly.

The PS3 and 360 both cost the same. The PS3 is full future proof, the 360 is today proof.

The ps3 hooks up to your pc as well. You can install linux on the ps3. Just so you don't run out and buy a 360 just yet the ps3 does alot more and does it alot better.