The PlayStation 3 has gone from strength to strength in the past few years, overtaking the Xbox 360, even though I have no evidence for this. The allure of free internet and blu ray capacity has overtaken being able to play music in game. I've had two PS3s, the original 60gb and the newer 120gb PS3 slim, the latter being the better product. It's hard to believe there were once 20gb models, which would be like trying to house the every song by a black American onto a 50mb iPod...it can't be done. So, yeah, clumsy metaphors aside if you want to buy a PS3 defiantly don't go lower than 60gb or you won't have enough memory after a year.

There's not much to say about the graphic processor that hasn't been said...next-gen games look better than they ever have done and if you have a good HD television (see my LG TV review) and a HDMI cable your good to go, making even the first Metal Gear Solid look immersive and real again. There's also a very nice range of PS3 exclusive titles now; whereas the Xbox does have it some great exclusives, it's pretty much a dozen different variants of shooters set in murky grey/green environments. The PS3 on the other hand has the amazingly ground-breaking LittleBigPlanet series, the most enjoyable ever and clichéd (and that's a good thing) adventure series Uncharted, hugely original film-game noir Heavy Rain and the stunning but downright sadistic God of War III. So, if you get a PS3 you do get a nice few games.
My original console did get the 'yellow light of death' which was annoying, but it lasted 3 years which isn't to outrageous. No problems with the slim version so far, which also emits far less noise.

Sony (wisely) doesn't make you pay for online useage, but does include the new PlayStation Plus feature. I don't care enough about online gaming to spend £40 on these things usually, but with a huge amount of discounts free content like all the first 3 Resident Evil titles, and full PS3 games like Tomb Raider Underworld, on a constantly rotating basis, the PS Plus is surprisingly worth getting, as you do make that money back.

In summary, the blu ray feature, internet browser, iplayers, Netflix, and various other free content make this win out over the 360.