I'd have to say PS3. I don't have neither system personally but have seen many nights at my friends house playing both consoles. I really think 360 has better games. Plus it has Halo 3
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I really like it because of the online play though and it's cheaper. If you like playing games with your firends or online I highly suggest the 360, it's like magnificent compared to ps3's online play, which is horrible.
I believe the only thing that the ps3 has over the 360 is graphics, it can use multimedia cards, sixaxis controllers availiable from local stores, and blue ray. But it costs an arm and a leg.
But with 360 you get wayy better online play, you could mod it up if you wanted to (hardware mods especially, that alone could outweigh anything the ps3 has), better games, cheaper (you get one with a 120gb hard drive & 2 free games 50 bucks cheaper then a ps3 with a 80gb hd & only 1 free game), and there's really an unlimited amount of ways your 360 can look (3 different paintjobs strait from the store, along with those gamer skin sticker things and faceplates, not to even mention hardware mods, which open up even different performance between systems).
I mean really, all ps3's pretty much look the same aside from stickers. But look how unique the 360's are. Just buying one strait from the store yo have 3 different paintjobs you can choose between.
So end the end, if your into the best graphics ever, or the whole multimedia thing like HD tv, getting blue ray movies to make your movies look the best they can look then get the ps3, if your into everything else get the 360.