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I've seen the PS3 in action for a bunch of games, and I've seen the xbox 360 in action on a bunch of games, and there's not much of a comparison. xbox 360 blows PS3 out of the water.
Also, XBox networks with your PC in ways that PS3 will never have, much less compete with. Media Center, comes with Vista, allows you make your XBox a full media/entertainment center.
And Live will join the PC world with the Console world and allow people to play multi-player games cross platforms.
And to top it off, XBox has developed a new XNA framework for programming games for both Windows and Xbox with relative ease.. making games open source for more creativity and limitless programming boundaries/possibilities. Companies can make games faster, cheaper and better and people at home with a dsl connection and some progamming know how can now create the games they've always wanted with nothing more than a quick download of XNA Game Studio Express.
PS3 on the other hand.... well, even the top game companies don't like developing for the PS3, much less have anything to make it faster and easier.
I think M$ has really taken consoles to the next level with the XBox 360... PS3 just can't come close to competing with these features.
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