I have both as well. Got a ps3 for my girlfriend so it is pretty much mine. lol. We both have 360's (I know, she is awesome). While the ps3 is free online there is a reason. Mine pisses me off. It takes about 6 tries to update the system and then I can't sign online to play games unless I do it from the playstation store. Makes me furious. For 300 though you get a 120 gb hard drive. Nice, but got the same thing for my elite 360. I have already used more space on the ps3 because downloads and everything take a ton more space. The bluray is amazing though! Avatar on bluray is awesome. Mag is amazing. But 360 controllers feel better in my hands. I am a 360 fan. They update well, cool games (only 3 that are worth buying on ps3 that aren't on xbox, mag, jakes uncharted, and little big planet is cool too but that's about it), online doesn't cut out like ps3, it's a better system for my needs. With all that said, the ps3 is a better family system with the games and the bluray. Go with what will get the most use for you and your family.