Ok, imho the 360 is the way to go, I have owned all 3 of the next gen consoles and ended up selling my PS3 and Wii. All systems have their advantages and disadvantages over the other console but for me personally the 360 was the best.
The PS3 is a serious machine, the hardware sets itself above every other console of this generation. The Blue-Ray is amazing and since HD DVD is dead, blue ray is the standard for high definition movies.
But... the online gaming of the PlayStation has a long way to go before it ever reaches that of the 360, although it is free compared to the 360's $50 a year. As far as games go, PS3 has three games that are exclusive blockbuster games, Resistance (1 and 2), MGS4 (which may be coming to 360) and Killzone (1 and 2). Other than that most every great game is either on both the 360 and the PS3 or exclusive to the 360.
As for price expect to pay 400 for the 40gb version, that is not backwards compatible, 500 for the 80gb version that is backwards compatible. The PS3 does not come with component cables or HDMI, so you have to buy that for HD gaming and to make use of the Blue Ray. And you also have to buy your first game.
Overall the PS3 is a good gaming console. But the price is twice the cost of other consoles of this generation. When the PS3 came out 600 dollars was crazy, but you could justify it as a cheap Blue Ray player, but now that Blue Ray players are less than 300, you cant even do that.
The 360 is a great all around game console. It offers games that are easily accesible to the casual gamer (Guitar Hero, Rock Band, Viva Pinata) and games that appeal to the hardcore gamer (Halo 3, Call of Duty, Mass Effect, Gears of War (1 and 2). While its hardware is a little less capable than the PS3 it will not effect game performance at all in this generation.
The media capabilities set the Xbox appart from its competition. Using the Xbox to stream Netflix movies is simple and convenient. Xbox live is amazing and a good deal for only 50 dollars a year. With over 7 million users online Xbox live is the standout winner in this generation for online gaming.
The 360 has three different versions. The Arcade retails for 200, but it does not have a hdd and comes with a wired controller, but it typically comes with one or two games. The premium or pro version retails at 299 and comes with a 60gb hdd, a wireless controller, one month of Xbox live for free, and some bundles will include a game. The elite version comes with a 120gb hdd, one wireless controller, one month of Xbox live for free and does not come with a game. All versions come standard with component cables in order to enjoy HD gaming right out of the box.
Overall the Xbox 360 is my pick for the console with the most to offer. The online gaming capabities, the relatively low entry cost, and the list of exclusive blockbuster games set this console apart from the PS3 and Wii.
The Wii is great for casual gaming. It's cheap, only 250 ($50 more than Xbox 360 Arcade). It some good games (Mario Galaxy, Legend of Zelda, Mario Kart, Smash Brothers). It can be fun for little kids and is good for parties. The draw backs are the lack if games that meet the needs for hardcore gamers, and the fact that swinging the wiimote around does get old after a while. Although the backwards compatibility is awesome.
In my opinion the 360 is the best all around although each console does have its strengths.
