I'm actually holding out for the Playstation3. I believe it will be a better system, cell processor, 50GB blu-ray discs, HDMi outputs, I own about 50 PS2 games, etc.

The 360 is definatley impressive, I've played CoD2 and it looks great. I think it may have been rushed to market, but I guess we'll see. I did read a bit the other day about M$ pumping false shortage to increase interest/demand, I figure it's cause they already know it will be an outdone 'old' system sometime next year. Not a long life for a console...

Regardless, I wouldn't buy either till I upgrade my television. I've got my eye on a DLp. But like ISCE said, it's the peripherals that you have to worry about.