Rusty, I realise you're looking for honest assessments so bear with me as I try to keep this as unbiased as possible.
If you had asked me this question last gen, I would have honestly said go with XBox if you like FPS and sports games and go with PS2 for everything else. This gen however, I have to say the XBox 360 line-up is pretty strong if every area. Personally, I'm not one to drool over Gears or Halo. They are great games for sure, but they shouldn't be the only reason you go with a 360. Here are the major factors I weighed when deciding which console to buy with this generation.
1. What are your friends playing?
For me this one was easy. Most of my closest friends (and I'm talking real life friends here) have had XBox's for years, so in this respect my choice was easy.
2. Is HD important to you beyond games?
If all you want right now in terms of HD content from your console is games, then the 360 is your console. Both the 360 and the PS3 have support for 1080p, and at this point the graphics are basically identical. That said, if you are ready to buy into the HD movie formats and you want to go with BluRay, then I'd say go with PS3. So far, it's impossible to call whether Sony (BluRay) or Toshiba (HD DVD) is going to win the HD format war, so it's up to you which camp you want to side with. At least with the XBox you get to choose whether or not to buy into an HD format.
3. What kind of games do you like to play?
This is probably the most important thing you have to ask yourself, but of course you already know that. In terms of game libraries, the 360's library is much more extensive so far, and in looking at the future I don't see the PS3 pulling ahead anytime soon. The way I see it, 90% of the great third party games are coming to both systems, so it really comes down to which first party games you want to play. I'd say in general if your more into shooters and sports games then the 360 is a must buy. This time around MS is also very strong in the RPG department with exclusives like Blue Dragon, Lost Odyssey, and of course Mass Effect. The only big name RPG I can think of at the moment that Sony has exclusively is FFXIII. For most other genres it's pretty much even.
4. How important to you is a good online experience?
In this case I would definitely side with the 360. I have been an XBL subscriber for over 2 years now, and I can't remember what life was like before XBL. I love the dependability that comes with XBL. Whenever I buy a 360 game, I know without even thinking about it that there will be some kind of XBL support. I know exactly what the interface will look like, and I know that my friends list will extend across any game I want. That kind of consistency of the online experience really does make XBL so enjoyable. I cannot speak from experience when talking about the PS3's PSN, but from what I hear it is not nearly as consistent. I shudder at the thought that my friends list would not carry over from one game to another. If you're like me and the other millions of XBL subscribers, you have friends online who you like to play many games with, not just one single game. As if that wasn't enough, the XBL marketplace is incredibly deep and ever expanding. That said, the PSN does have their "Home" service coming up soon, but IMO as cool as it looks, it wouldn't mean much to me because it doesn't fix any of the inherent shortcomings in the PSN service which I have already discussed.
5. How dependable is the hardware?
As much as the MS fanboy in me hates to say it, the PS3 is a much more dependable machine in terms of hardware. At this point if your buying a 360 it's best to just assume that it's going to break at some point. The three year warranty is great, but IMO I would rather have a more dependable console that doesn't need a three year warranty to be an attractive buy. Even with the warranty, you still have to wait at least a week or two to send in your console and receive a new one. Personally, I bought an extra warranty with Best Buy when I got my 360, and I'm glad I did. When my first one broke unexpectedly, I just took it in and exchanged the system (thankfully not the HD too) with a brand new one off of the shelf. Even so, with the new 65nm processor firmware update coming soon (hopefully) 360's will become much more dependable. The bottom line here: buying a 360 is still riskier here than a PS3, but at least you have the warranty so you don't end up paying for MS's mistakes.
That's all I can really think of at the moment. I'm sure there are more questions that you have or will ask yourself before you take the plunge. Anyway, good luck Rusty, and I hope you're happy with whatever console you choose.
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