For serious gamers like me the Xbox360 is the best in terms of the stunning graphics- it comes with the Xenon CPU which is more powerful than PS3's RSX. Price wise the Xbox is less costly. Although both consoles come with hard disk space, the PS3 wins here with about 54 gigs of memory on the blu-ray,Xbox 360 is just about 9 gigs on double layer DVD's. The microprocessor chip is another factor too. PS3 wins with the cell engine.
Personally i love the Xbox 360.