Sony PlayStation 3 (80GB)

Pros: Powerful, durable, dosent get too hot, great exclusive titles, wifi built in, free online play. Blu Ray.

Cons: PSN still lags behind Xbox live, but hey, its free.

Summary: To start this off, let me preface this review by stating that I had owned an XBOX 360 since Early 2007, and it is now August 2009. I loved my 360, it was a great machine, but in comparison to my new PS3, it leaves some to be desired.
My 360 RROD once, and it had to be sent in for a 2 week repair at the cost of 100$ to me. The new PS3 does not get anywhere near as hot as my 360 did, and I feel very good about its construction. The controller is very similar to what xbox offers, but comes standard with an internal rechargeable battery. HDMI output allows true 1080p HD, and PS3 actually has games coming out native in 1080p such as GOW3,while XBox only upconverts to 1080p. Interface is not as good as 360, but does the job, and the PSN, although not yet up to live, is very good for a free service.
Overall, I prefer my PS3 do to its construction, exclusive titles, free wifi and Blu ray, which really does look amazing. Its just more bang for your buck imo at 299.