Having owned a PS3 and an Xbox 360, I can say without bias that both are great systems and we should all be excited at the competition for this generation of video game consoles.

The Good:
The 40gb Ps3 comes with increased Wireless and Bluetooth range and reliability, and new components that reduce energy by 32.5% of previous models. The heat difference between this and other models is incredible. This things runs very cool for hours.

All PS3 models can connect to the internet for online gaming, shopping, web-browsing, and even medical research for Stanford when you aren't playing. It is nice that the PS3's user-base tends to be older and it doesn't come with a headset, so you don't get much of the 9-year-olds running around screaming during games. And the PS3 has better sound features and hard drive space than the entry level xbox 360.

Another huge feature is that the PS3 plays hi-definition movies on a format called blu-ray. I just purchased an HDTV and the picture of Blu-Ray movies is 3D-like and incredible. Games are also played on Blu-Ray discs and several games have already maxed out on Blu_Ray's massive storage capacity. In other words, as HDTV's become more popular, this format will likely become the medium that people watch new movies on. The games on PS3 in the very near future will not fit on the DVD discs that the xbox uses. Another great thing is that the PS3 upscales regular DVD's, which means all DVD's, despite their age, look OUTSTANDING on my television.

The Bad:
But the 40gb PS3 doesn't get everything right. While the 40gb model plays 100% of PS1 games it can NOT play PS2 games like other models can. But after playing recent PS3 games like Call of Duty 4, I realized I don't want to play my old PS2 games anymore, since they just can't compare to this experience.

Second, it doesn't let you keep your music playing once you launch a program, enter the store, or go to a settings menu. And you can't message friends in a game like the 360 can. What's more, Sony's store has a hideous interface (especially on Standard Definition TVs), is clumsy, and needs a serious redesign. The good news is that, it's not nearly as bad as everyone claims and it should get an overhaul this holiday season once Sony launches a new interface. Also, unlike Xbox, the service is free, which is awesome and has caused me to buy several great inexpensive games from the PS store.

Another issue is that the PS3 uses new Cell processor technology so developers have to invest a lot of time to learn how to use the PS3. This has meant that the games for both the 360 and PS3 have tended to look much better on the 360 with the PS3 versions being half-hearted ports. However, developers like Midway, Capcom, and many more are starting to realize this problem, get the hang of things, and prioritize PS3 development first. So recent PS3 games like Uncharted: Drake's Fortune are looking spectacular.

And finally, this model only has two USB ports and they don't include an HDMI cord OR component cables in the PS3 box. So you HAVE to buy one of them separately otherwise the picture will look terrible on an HD or digital TV. They also don't include an ethernet cable, which was a surprise.

The Verdict:
This generation of game consoles is a win-win and I was on the fence for a year before getting and then returning my xbox for a PS3. The main factors for me were quality assurance, longevity, and value. The PS3 simply feels like it is a more sleek higher end unit. It has never frozen on me like my 360, and has a 1% failure rate as opposed to the 33% failure rate for the 360. Further, the PS3 is projected by many financial analysts as lasting for a long time. The xbox 360 might be outdated by late 2009, but the PS3 has a ton of untapped potential.

Several recent exclusive games like Lair, Heavenly Sword, and Ratchet and Clank have looked incredible despite the product being less than a year old. And in my opinion, they look better and have more characters and action on screen than any game I've ever played on another console. And finally, feature for feature, the PS3 is a way better deal than the xbox 360. You get a Hi-Def player, wireless capability, an optional use as a home computer, a web browser, media center, cutting-edge video game machine, and 5 free blu-ray movies if you fill out the rebate form before the January deadline.

In addition, the VARIETY of games on PS3 is astounding. There are Playstation Eye Camera games that let your body movements interact with the game, Sixaxis controller games that focus on tilting your hands to steer, the whole gamut of traditional game types, arcade games you can download from the Playstation store, and revolutionary games like Echochrome, Little Big Planet, and the Home social network. There is something for everyone which I feel is a balance that isn't struck as well with the PS3's competitors.

While both the 360 and PS3 are great systems, the PS3 definitely is a better long-term investment because it can do so much more than just play video games and will only get better with each firmware update. To put it in two words, the PS3 really is "future proof."

See my 80GB review for a full and detailed look atht ePS3, it's capabilities and games. The 40GB was a very smart move for Sony. Let's first address what detracters will say is a problem. Lack of backward compatibility with PS2 titles. First, almost all people who own PS2 games currently, own a PS2. The disadvantage is they can't sell it off and have to support running two consoles. Of course, selling it won't net you the $100 price drop this PS3 gives you so financially it's still advantages. Some XBox owners will use this as a point to detract people from going with the PS3. They fail to mention that the XBox core edition also has no backward compatibility. In fact, it doesn't even have a hard drive. The XBox premium edition has somewhat poor backward compatibility as well.

Really, people are buying PS3s to play PS3 games and watch high definition Blu-ray movies. For $399 you get two in one. Back to that in a second. What else in the 40GB missing? It's missing memory card readers. Rarely to people use these. Most people use USB and/or already have a USB memory card reader for their PC which will work fine for the PS3.

It also has 2 USB slots instead for 4 but USB hubs are dirt cheap. Lastly, it uses a 65nm process instead of a 90nm meaning the chips are smaller and use less power. This is good.

It has all the same movie and gaming capability, built in wireless internet, Blu-ray, HDMI 1.3, etc...

So for $399 you get a high definition player and a next-gen console with wireless internet. The cost of this for the 360 would be:
1. $349 for premium (20GB) 360
2. $179 for HD-DVD player
3. $100 for wireless internet
Total: $628

That's expensive! If you don't need wireless internet you're still paying $528! You might as well go get a cheaper HD-DVD drive on Ebay but of course now you probably have multiple consoles and movie players.

Of course the PS3 upscales regular DVDs to 1080p as well so you can get rid of your old DVD player.

Some people will argue the games aren't there yet. See my 80GB review for details on that. Here's some quick examples of great games for the PS3 in stores now or released before the end of 2007:

I've rated each game from 1-5. I've excluded many games and tried to focus on the games I like.

1. Heavenly Sword (Exclusive to PS3) 4/5, incredible game, just too short.
2. Warhawk (Exclusive to PS3) 5/5
3. Folklore (Exclusive to PS3) 4/5
4. Guitar Hero III 4/5
5. Eye of Judgement (Exclusive to PS3) 5/5 - Niche audience
6. Haze (Exclusive to PS3) Not out yet
7. Ratchet & Clank Future (Exclusive to PS3) 5/5
8. Uncharted: Drake's Fortune (Exclusive to PS3) Not out yet
9. UT3 (Maybe for this year) (Timed exclusive to PS3) - only console version that supports PC mods, and mouse/keyboard
10. Ghost Recon ADW2 5/5
11. Rainbow Vegas Six 5/5
12. Ninja Gaiden Sigma 5/5
13. Fight Night Round 3 5/5
14. Super Stardust HD 5/5 (Exclusive to PS3, downloadable under $10)
15. Everyday Shooter 5/5 (Exclusive to PS3, downloadable under $10)
16. Calling all Cars 4/5 (Exclusive to PS3, downloadable under $6)
17. Super Puzzle Fighter HD Remix 4/5
18. Madden 08 4/5
19. NHL 2K8 4/5
20. NBA 2K8 5/5
21. MLB 07: The Show 4/5

And there's a lot more to come. For instance Gran Turismo 5 Proglogue is free this year, with Gran Turismo 5 coming out next year. Little Big Planet may be the biggest and most innovative title since Mario and will be out in January/February time frame. And of course there's Metal Gear Solid 4. This game looks incredible and will undoubtly be the biggest game of 2008.

Good luck with your purchases!

By now, everyone knows the details of the system. I had to chose between the 40GB and 80GB system. For me, it was easy. I don't need any of the extra features of the 80GB system. (limited PS2 compatibility, extra USB, card reader, Motostorm game etc.)I also didn't need the 80GB because I upgraded the 40GB HD with a faster 120GB HD, and it only cost me an extra $55. The 40GB system also has the 65nm Cell Processor. So for less than the 80GB system, I have a faster, quieter, cooler, and more energy efficient 120GB system.

I purchased this March 4, 08. I was one of the Toshiba HD DVD people (and still enjoy the HD DVDs' I have) and have to say I am really pleased with the PS3. The upconversion is excellent. I have a samsung upconversion that doesn't look anywhere near as good as this blu ray player. The blu ray movies look as good on this player as the HD DVD, I don't see any difference. Also, to top it off, while I have never been a game boy....I am enjoying the games that I can play on the PS3. As a soon to be 43 yr old it seems a little complicated, however, I can't wait for my 5 yr old nephew to come over and show me the ropes LOL. The PS3 has been well worth the purchase...keeping me up late at night...!!!!!