My Brother bought the XBOX360 while I bought the PS3. My brother is now planning to buy a PS3.
Originally I bought the PS3 for the Bluray player and the better technical specs making it future proof for a while. Games were not really an issue as there is an understanding that a system will have more games as it ages.
Now that I have it I totally recommend the PS3 over the XBOX360
It make a great media center as was mentioned in previous posts. I have TVersity installed on my home PC streaming HD video and all my other media. Accessing AVCHD files from a camcorder from the PC or directly on the PS3 is much easier than searching for the DVD it was burnt on. If you have a TV Tuner with TV Guide PVR capabilities, the PS3 turns into a backup PVR for when 2 tuners on the shaw PVR are not enough. This especially has made the PS3 extra wife friendly
You can upgrade the hard drive and or add a FAT32 formatted external harddrive via USB.
My only gripe was that no IR prevented me from using the Logitech harmony universal remotes but I am now just waiting for my solution to that in the mail.
Now I am just trying to get rid of the noobish-ness to join the PS3 Calgarypuck Fata's
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