Summary: Sony is going to have to fix the lack of 720p support (720p Blu-Ray playback and 720p gameplay) before the PS3 can be considered a true HD device.  Paying $700 ($600 for PS3 and $100 for HDMI cable) for a Blu-Ray player that only outputs the high end of the HD spectrum is a waste for many HDTV owners.  The PS3 graphics are no better then the Xbox 360 so there is no advantage there.  The online PS3 experience needs some serious upgrading to be competitive with Xbox Live and the Video Marketplace.  Annoyances like the lack of a swappable controller battery, awful graphics quality on PS1/PS2 games, no selectable in-game music, no infrared remote support, and single user online logons will probably never be fixed. Christmas 2007 will be the time to consider purchasing a PS3.  For now the above problems coupled with unit unavailability, poor game choice, and high price make buying a PS3 an option for only the stoutest fans.  Sony has released a product a year after a competitors’ less expensive and more feature rich product.  The facts that the less expensive Xbox 360 pretty much matches the PS3 feature-for-feature and has its own set of unmatched features makes the Xbox 360 a better choice for consumers.  Sony has an uphill battle with the only ace in the hole being their huge installed PS1 and PS2 user-base.  It is doubtful that will be enough, it hasn’t worked for other companies in the video game business, there is no reason for it to magically work for Sony.
 

Feature

Xbox 360

PS3

Advantage

Support for HDTV

Yes
Xbox 360 Premium ships with a cable that can connect to regular TVs (composite) or HDTVs (component).  The Xbox 360 Core ships with a cable for connecting to regular TVs (composite/S-Video).  A VGA cable is also available for connecting to HDTVs. 

Yes
However, both PS3 SKUs ship with composite cables.  A separate HDMI cable must be purchased to enable HDTV connections.  Not all HDTVs have HDMI connections.

Xbox 360

Game Graphics Quality

There has been a lot of speculation in the press concerning the numerical crunching capabilities of the PS3 cell processor.  The techno geeks have written a lot about Sony’s overstatements concerning the number of teraflops available to developers.  In the end there is a consensus that the specialized PS3 Cell has only a slight potential performance advantage over the triple core CPU in the Xbox 360 that is more then offset by the way games are actually built and the programming tools available to Xbox 360 developers that Sony has failed to provide to PS3 developers.

Most importantly, graphic capabilities are going to be largely based on 1) the graphics processing unit (GPU) not the console’s central processing unit (CPU), and 2) available graphics memory.  The Xbox 360 has a more powerful GPU and more graphics memory.

Xbox 360
Currently on a side-by-side comparison games that play on both units look better on an Xbox 360 (see 1Ups.com side-by-side comparisons).  But only marginally, and this may change as programmers get used to the PS3.  It should be noted that PS3 game graphics do NOT match the pre-rendered “demos” shown at recent electronic/gaming conferences.    Some PS3 games are only playing in 720p and are still suffering framerate issues (see below).

Game Graphic Standards (720p, 1080i/p)

All games support 720p and 1080i.  1080p capabilities have recently been added to the units and some developers are rumored to be enabling 1080p game play.

The PS3 is designed for 1080i/p, but some games only play in 720p.  Games that only play in 720p will display in 480p on HDTVs that do not support 720p (e.g., if you have a 1080i/p HDTV that does not have 720p support.  This is a MAJOR issue - 720p games play in 480p on some HDTVs.  The PS3 cannot scale!

Xbox 360
If Sony ever fixes this scaling problem (and they’ve not committed to such a fix) this will still not be a draw.  Some PS3 games are being produced in only 720p.  The machine currently does not provide an adequate frame-rate for high-graphic games in 1080i/p.

Game Selection

Over 150+ games
 

20+ games

Xbox 360
In addition, many PlayStation exclusives are no longer exclusives on the new generation of consoles (e.g., GTA, Assassins Creed, Metal Gear Solid (maybe), Virtua Fighter 5, etc).

Game Load Times

Uses a standard DVD for game playback.  Data density is low, but disk speed is high, resulting in a very high data transfer rate and low load times

Uses a Blu-Ray DVD for game playback.  Data density is high, but disk speed is low, resulting in a low data transfer rate and high load times.  Some game designers are compensating by pre-loading portions of games onto the hard drive

Xbox 360
The Xbox 360 data transfer rate is over twice that available on the PS3.  Online forums are reporting substantially longer load times for games on the PS3.

Backwards Game Compatibility

Limited
Microsoft initially indicated that the Xbox 360 would not be backwards compatible, but has continually been adding to the growing list of Xbox games that will play on the Xbox 360. Xbox games look better than ever thanks to upscaled visuals and the addition of anti-aliasing.  Some games even play in 720p.

Limited/Poor Quality
While promising 100% backwards compatibility, some PS2 and PS1 games will not play correctly on the PS3.  Game saves can be transferred from a PS2 to a PS3 using an optional memory adapter.  However, PS2 games have terrible visuals on the PS3.  Multiple posting on YouTube can be found showing the difference. 

Xbox 360
The larger backwards compatibility available on the PS3 is offset by the poor graphics reproduction of many games.  Old games on a Xbox 360 look better then they did on the original Xbox.

Online Game Support

Yes
Unified presences across all games.
Private/Public Chats
Reputation
Achievements
However, must pay to play against/with others (there is an advantage in this approach as a player’s reputation is tied to their ID on the system, an ID that costs to change)

Yes
No charge (from Sony) regardless of level of service
No single standard with which developers must comply. Servers are left to individual game companies to maintain, which means they will be, at best, inconsistent and, at worst, horribly undependable and features-dry

Xbox 360
Xbox Live is a mature service that Sony has failed to replicate.  Volumes could be written regarding the differences, but Microsoft has the winning formula here.

Multiple Online Users Yes
Multiple online profiles may be logged in at once.
No
There’s also no way to have two or more users logged in at the same time, such as when you’re playing a multiplayer game.
Xbox 360

Internet Browsing

Limited
Access to information on Xbox Live and browsing if connected to a Media Center PC

Yes
Surf the internet using the PS3 internet browser.

PS3

Support for High Definition DVD

Yes
Microsoft sells a HD DVD drive that can be added to a Xbox 360 if a user is interested in High Definition movies

 

Yes
The PS3 ships with a Blu-Ray player.  This is not an option.  You get a Blu-Ray player whether you want one or not.

Draw
However, see below regarding supported resolutions on playback.  If you have a 720p HDTV the PS3 Blu-Ray playback is going to be in 480p (i.e., look like a regular DVD).  In addition, PS3 1080-24 playback does not currently work correctly.

Infrared Remote Yes
The Xbox 360 has an infrared port that the Microsoft remotes, 3rd party remotes, and Universal remotes can use to control movie and video playback.  It integrates well with existing home theater systems.
No
This is one of those decisions that makes no sense.  The PS3 is supposed to be an entertainment center...yet it has no infrared port.  Only Bluetooth.  So it is NOT compatible with just about any remote sold.  There are infrared and even a few UHF remotes, but no Bluetooth remotes (except from Sony)
Xbox 360

Support for High Definition DVD playback on 720p HDTV

Yes
HD Movies look spectacular on a 720p HDTV

No
720p playback is not supported.  If your HDTV does not support 1080i/p then playback will be at 480p (standard DVD resolution)

Xbox 360
 

Support for High Definition DVD playback at 1080i/p

Yes
However, the current cable type (component) on the Xbox 360 does not support the digital rights standard (HDCP) that studios can (none have) enable that restricts playback to 720p if a HDMI or DVI-HDCP connection isn’t present.  1080p does not currently work on some Sony HDTVs.  In addition, some 1080p HDTVs do not support 1080p input via component or VGA.

Yes
However, playback in 1080-24 is not currently properly supported.  Sony has promised a firmware update to fix this issue (December 2006).  No support for 1080p via component or VGA.  DVI "kinda" supported with a HDMI to DVI converter (works on some systems, not on others)

 

Slight edge to PS3
Many older HDTVs do not support HDMI.  Xbox support for older HDTVs is a plus, but mainly wasted as most older HDTVs don't support 1080p. If studios ever start enabling HDCP on HD DVDs Microsoft will have to come out with a HDMI connector for the Xbox 360 or the advantage will go to the PS3.

Support for downloadable Movies and TV shows

Yes
Movies are available for rent and TV shows for purchase if an Xbox 360 is connected to a network.

No
Sony has indicated they plan to provide this support in the future.

Xbox 360

Wireless Controller

Yes
Batteries are replaceable with either disposable AA batteries or with a rechargeable set.  Rechargeable batteries can be recharged in a charging station or with a long recharging cable.

Yes
However, the battery is non-removable.  When it will no longer charge the controller will have to be thrown away.  In addition, when charging is required the controller must be plugged into the console – a short cable is provided.

Xbox 360

Rumble/Motion Sensitive Controller

Rumble
Feedback via the controller.  Fire a gun, take a hit and you feel it.

Six Axis Motion Sensitive
Not a Wii controller.  So far the games don’t make very effective use of this feature.  It was added late so maybe as developers get used to it they will do something spectacular like the Wii.  Recent forum reports of PS3 controller "quirkiness" are disappointing.  Who wants to be kicking ass in a game and have your character do "things" you didn't direct.  Get used to it on the PS3.

Xbox 360

Price

$299, No Hard Drive
$399, 20 Gigabyte Hard Drive

$499 ,20 Gigabyte Hard Drive
$599, 60 Gigabyte Hard Drive, Built-in WiFi, Built in memory card reader

Xbox 360

Rip CDs

Yes
 

Yes

Draw
Both consoles can rip CDs to their Hard Drives and download CD information from the Internet if connected.

Store Pictures

Yes
 

Yes

 Draw

MP3 Player Support

Yes
Supports iPod, Zune, and most USB connectable MP3 players.  Note: iTunes DRM protect content will not play.

Limited?
Music on memory cards can be played back on the more expensive PS3.  General MP3 player support available.

Xbox 360

Media Center Support

Yes
TV, Video, Pictures, and Music stored on a Media Center PC on the same network are available on the Xbox 360 (it acts as a Media Center Extender)

No

Xbox 360

Play Music/Pictures/Video from networked PCs

Yes
 

Yes
 

Draw
Video, Pictures, and Music stored on PCs on the same network are available to the gaming consoles.

In-game Music Support

Yes
Music ripped to the Xbox 360’s hard driver, on attached MP3 players, on Media Center PCs, and on regular PCs or Macs can be played back during games (replacing in-game soundtracks).

No

Xbox 360

Handheld Game Unit Support

No

Limited
Some PS1 games can be downloaded via the PS store, transferred to a memory stick (on the more expensive PS3 only), and loaded onto a PSP for play. In theory a PSP can be used for other features (e.g., rearview mirror in auto racing games) in PS3 games.

PS3

Ethernet Port Yes Yes Draw
WiFi Yes
Optional.
A/B/G WiFi Standards
Yes
Built-in to more expensive model.  Not available in cheaper model
B/G WiFi Standards
Xbox 360
While having the WiFi built-in on the more expensive PS3 is nice, being able to add it to either Xbox 360 is a great option.  The Xbox 360 also supports more WiFi standards.  In addition the Xbox 360 configuration is easy and straight forward.  There have been numerous complaints concerning the PS3 WiFi configuration
Linux O/S Support No Yes PS3
However, current versions running on the PS3 do not properly support the Cell processor and it runs about the same as a 800 MHz Intel based PC.
Support for user developed games Yes
Microsoft has release the XNA developer's kit for end-user game development
No Xbox 360