I own both. Obviously the xbox hardware issues (not limited to the RROD, there have been plenty instances of disk drive failures and the dvd lens scratching disks as well) but the ps3 is not made of stone either. I've had the flashing yellow light of death twice and while it hasn't hit the mainstream the way the xbox rrod has, its a problem out there.
But it comes down to what you want. Jao summed it up well by saying if you want a games machine, get an xbox. If you want a blu ray player that plays games too, get a ps3. There are other factors you might want to consider though...
The ps3 does not (unless if you buy a launch console from ebay) have the ability to play ps2 games these days. This might sound like a small issue, but its can be a deterrent. Before MG4, and after I finished uncharted, I played my ps2 more then I played my ps3.
The ps3 also has the ability to use 3rd party peripherals such as hdd's for much cheaper then the xbox alternatives. $180 for a $120gb hdd? $150 for a wireless adapter? Jesus Christ...
The xbox is actually a much quieter machine then the ps3, or mine anyway. On the ps3 dashboard, it's very quiet. But if you run any application, a dvd or a game, within 5 to 10 minutes the main fan will kick in and it sounds like vacuum cleaner. Not every PS3 is like that, but not every xbox gets the rrod either.
The games on xbox are better then the ps3 ones. Gears of War, Halo, Forza, Crackdown etc. These games are quality. The ps3 does have some promising exclusives coming up, but they shouldn't be what you buy a console on unless you are a fanboy of that series. How many people are playing Haze or Lair right now?
Just some things to remember
