Like Philo says, depends on what you are looking for.
I myself am a bit of a 360 fanboy, as you'll find out below. I do think the PS3 is a great machine by the way, I just think the X360 delivers more for now.
360 has waaaaay more great titles then PS3 (for now at least) and most
PS3 titles are release on X360 as well (and vice versa).
360 has a superior online experience with a lot more clients (even games that aren't that populair anymore regularly find matches).
360 doesnt have Blu Ray, or an HD drive built in. It is however offering (or going to offer, depending on your location) HD movies through Xbox Live. I myself don't really care though, since normal DVD is good enough for now (I have good upscaling equipement).
PS3 is said to have better graphics, it's just that there aren't any games around to prove this, or at least, i haven't seen any yet.
X360 is less expensive, but tends to break down (30% did), but comes with a 3 year warranty. MS also states they've been working on it and newer consoles won't break down so easy. MS Support is great though, got me a free game (Gears of War) and they swapped my console
.
PS3 comes with 1 year warranty, is more expensive and is built by Sony.
For work I regularly contact Sony Support (for different products) and IMHO Sony Support Sucks (yes, with a cappital S). I've had plenty of cases where I had to wait for over a month (some even 2 or 3) before the product had been repaired (notebooks primarely).
Also, it is rumored that PS3's warranty is void when using unlicensed cables (original Sony accessoires are expensive by the way) or when Sony deems it "too dusty", which I consider inevitable.
Anyway, I think you should go with the 360 for now and perhaps buy a PS3 later on, when it's cheaper and has more titles to play. That's what i'm going to do anyway :roll: .