It's been shown in the specs time and again that the PS3 is not anywhere near as powerful as they claimed and in fact in many ways the 360 is superior. The only thing that gives PS3 a one up is that it can play Blu Ray movies. That's it.

360 also supports a better game library and that isn't only because of it's year head start, since the PS3 has been released it has seen scores of better titles while the titles PS3 has been relying on keep coming up being not so good.

In fact the only bad thing about the 360 WAS the high failure rate, but now all future 360s will not have that issue and older machines are now protected under and extended free repair warranty for the problem.

You add to that the large price difference and the answer is simple...

360 is superior hands down.