This case has been going on since the release of the Xbox 360 and PlayStation 3.

Right now... best choice? The 40gb PlayStation 3.

It is $399.99, while Xbox 360 Premium is 349.99, elite is 449.99, I will tell you why PlayStation 3 (in hardware wise) is a better system overall.

1. Investment for the future.
Remember when PlayStation 2 came out? PlayStation 1, PSONE was devouring the PS2 alive, cannibalizing its own company's systems.  But, look at it now, because the PlayStation 2 was a system with a DVD Player that was cheaper than stand-alone DVD Players, and after awhile, it has the most games out of any system available in the gaming market.  It is going to be the same thing with the PlayStation 3, BLU-Ray player that is cheaper than stand-alone, developers saying PS3 is hard to work on, hardly games for PS3. It's all the same situations that was in the PS2.  PlayStation 2 back then was the hardest system to code for when making an application, and there werne't many games for the PlayStation 2.  But now, it's THE MOST Successful gaming console in the world and history.  It will happen same way for the PlayStation 3.

2. Xbox 360 Reached its limits already.
I really don't care about 1080p, 1080i, crap. If its 1920x1080, ill be happy to accept it either in progressive or interlaced.
Xbox 360, with its DVD Drive, games will need to be released in SEVERAL DVD's. Not 2, but 3,4.  and the HD-DVD Unit is only for movies, and BLU-RAY vvs HD-DVD, Blu-ray is outselling HD-DVD 2:1.  PlayStation 3 is THE current generation system, Xbox 360 is last generation considering its storage medium, prioritory harddrive, non-wireless built in.  While PlayStation 3's Harddrive can be upgraded, (120gb is 100$, while 360 is 200$) Wireless Built-in, Blu-Ray storage medium. You are set to go, and 3rd, 2nd, and 1st party titles will come out more for the PS3 now than 360.

Thanks for reading my guide!