1. Parties: I have friends from school all over, and it's nice to get online and chat with all of them, since we all know each other, regardless of what the others are doing at the time. And entering a game is a snap. Plus you can share photos and watch a movie together, though I've never attempted the latter.
2. True-Skill Matchmaking: while it's an invisible feature, LIVE has algoryhyms that match you with players of similar skill. This is a good thing when you aren't very good at a game, or when you're great and want a challenge.
3.Headsets: Most everyone on LIVE at least owns a headset, making for a more social, communicativeexperience. Games haveteam-play more frequently,which is superior to PSN's silent servers.
4.Cross-application Chat:This feature is coming to PSN, because it's awesome. Just like with parties, you can talka friend no matter what they're doing. This is great. On PSN, I have to call people on my cellphone until we startthelobby. Not so with LIVE. PSN users will rave about this when they get it.
5. Netlix Watch Instantly looks better:Whilethe PS3 has better browser options for movies, I've started browsing on the PS3, only to watch the films on my 360. Sure, the PS3 let's you use Netflix without a fee, but the end result isn't as good, quality-wise.
6. Bigger user-base: This means more populated matches, and in my case, more friends with 360s to play with you. Most of my more casual friends aren't sold on the PS3 as a gaming platform just yet. (I like it, though.)
That's just off the top of my head. However, PSN is catching up as the consoles mature. LIVE is, in my opinion, the best online gaming platform yet created, though Steam, which is free for PC users, is pretty close.
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