General

I had an XBox360 for a while and liked it fine, but I had problems with it breaking so I finally ditched it and got a PS3. I'm much happier with it if for the BluRay player and nothing else.

if your looking at online props ... kotaku.com/5565042/xbox-live-vs-playstation-plus ... theres your debate. but to choose yourself go to either kotaku.com or joystiq.com and research whatever you like there ( preferably look at E3 stuff). imo i like the 360 better besides having both i had my first 360 since its very first launch (when it was only pro or core) untill nov of last year. ive had no problems at all with it. i think most of the games on it have a more lasting impression than some of PS3s ( Not counting Uncharted, LBP or other major titles or titles that been around for years since the PS2). Like i said i have a PS3 also but all ive played on it so far is God Of War 3 and to be perfectly honest, that was the only reason i wanted a PS3 anyway. Having a blu ray player really doesnt matter to me. but either way check out the sites plus the actual systems sites and see for yourself what games and features you like and its pretty much all there.

I bought a ps3 since it had more options like blue ray. Although I now think blue ray is a bit overrated.
I loved LBP, but grand theft auto sucked big time. I don't have the patience for that game. GTA works on the xbox 360 as well. Now i'm thinking about buying a 360 just to play fable...
and from what i've heard, it is very easy to copy games for the xbox 360, while it is virtually impossible for the ps3. And internet gaming is free for the ps3

Here are a few points that I haven't seen mentioned yet.

If you're looking into buying a PS3, it might be worth it to you to hunt down an older 60 or 80 gig one, as those are backwards compatible with PS2 and PS1 games. If you like playing older games as well as the new ones, you'll have access to the best games released for any system in the last 15 years. And they're dirt cheap as well. I just picked up a used copy of The Getaway on PS2 for $2 at a local Gamestop. On the downside, these rare PS3s will be more expensive, even used. It just depends on whether or not it's worth it to you. The Xbox360 is backwards compatible with older Xbox games as well, but Microsoft didn't have a very strong showing in the games department until the 360, in my opinion.

As far as downloadable games go, the PS3 is the only system that has Fat Princess, which you want. On the other hand, XBLA is an easier platform to develop for, and as a result, you end up with a ton of quality indie games that you don't get on PSN. That isn't to say that the selection of PSN games is subpar, though. They still have a number of good ones, including Fat Princess after all. If you're into online multiplayer, more people own Xboxes, and so you'll find more people to play with online. The downside is that you have to pay a subsciption fee, whereas it's free on the Playstation.

Personally, I'm avoiding Xbox products like the plague, just because I'm cheap, and I can't afford to replace it if it breaks (and they usually do).

I bought a refurbished PS3 back in Aug 07. I have had no problems with the system itself. I did go through a breif stretch where my good controller would not charge, shockingly enough, I plugged it into my laptop and fixed it.

PSN, online part, is FREE. As opposed to XBox live is 15 a month.

Blu Ray is amazing.