Xbox 360 Elite, because of the selection of games I have are not on the PS3. I know that HD DVD is dead, but I like the upconversion for my regular dvds with the external HD dvd player - I know it's minor, but it makes a difference for me. I also like the fact that I can use my wireless Xbox360 controller on my PC as both a game controller and as a mouse. And besides I cannot afford a PS3 right now.
Playstation 3: Blue Ray Player, Game Library, Free Online Gaming, Built in web browser, Great all in one HD Device (BlueRay/DVD/CD) Lighter controler with motion and rumble, expandable hard drive up to 500GB, great online store, frequent updates, PSP compatibility, sexier looking. To name a few :)
360 is good to dont get me wrong I just prefer PS3