this is the most beaten to death topic since the first xbox vs ps2 debate. . .
here's my 2 cents:
both consoles offer great amounts of content, games, and media. Take a look into what you want to do and go with that, because neither consol is "better" than the other. Depends on WHO wants WHAT. For some people who already offered their advice, the PS3 is better for THEM. For me, the Xbox 360 is the best choice. In my opinion, it all comes down to the games, price, internet, and blu-ray/HD capability.
First of all, this is a game console, so what games does each console offer that you would prefer? While both consoles do offer a lot of the same games, you also have to look into the titles that are only offered on one console or the other. The only PS3 exclusive that I am personally interested in is Metal Gear Solid 3. However, I really enjoy many Xbox exclusives such as the Halo series and Gears of War series games. Also, someone metioned a motion camera for the PS3, but I'm sure you haven't seen what Xbox has planned for 2010. Do yourself a favor and youtube "project natal."
Price is obviously self explanitory.
Next is online capabilities. I love xbox live, as it is well supported, offers great content (HD movies, netflix, etc) and great online game support. Netflix and Xbox have also teamed up to allow you to instantly stream HD movies straight to your console, and subscription fees start at like $10 a month. The few times I've played around with PSOnline I haven't been impressed. I used to work at Best Buy and a few of my fellow coworkers had both consoles, and all of them agreed that Xbox Live was much better supported than PS Online. Granted Xbox Live is $50 a year and PS Online is free, the $50 a year is nothing in the grand scheme of things, especailly if you play an MMO with a monthly fee.
Now, if you don't even have an HDTV, don't even bother reading this paragraph. I love blu-ray, and if I had a larger TV I would probably invest in one. However, that is just it, an investment. Blu Ray movies cost around $20 to $30 or more, and I personally already have a huge library of DVDs. Based a a variety of reviews, many claim that the Xbox 360 is the best upconvert DVD player available on the market (I heard a few people say that the PS3 doesn't even offer HD Upconvert, but I can't confirm this). Basically upconvert takes a standard resolution DVD and fills in all the missing pixels required for the larger 720p to 1080p formats. I've seen several movies on both blu-ray and upconvert, and while there is a difference, I still do very much enjoy the quality of playing a movie on my xbox 360 on an HDTV. This also saves me lots of $$$ by not buying my favorite movies all over again on blu-ray, and as a poor college student saving money has become a well acquired skill.
So in conclusion, look at all of the bells and whistles each consol offers, and pay more attention to which on you want. NEITHER CONSOLE IS BETTER THAN THE OTHER!!! It all depends on your wants, needs, and desires. For myself, the Xbox 360 is the perfect choice, because of the exclusive games offered, Xbox Live, and DVD Upconvert quality. For everyone else its different, so look into what YOU WANT.