In the words of Penn & Teller, Bullshit.
- Better selection of games - Both consoles have pretty much the same selection of games. Each have their own exclusives, and in my opinion I'd say the PS3 have a better selection.
PS3 Exclusives worth mentioning: MGS4, GT5, God of War III, LittleBigPlanet, Resistance 2, Ratchet & Clank, Uncharted, InFamous, Heavy Rain, Motorstorm, Wipeout HD, Katamari, Noby Noby Boy, The Pixeljunk Games, Flower, Final Fantasy Versus XIII, Warhawk, MAG, Tekken, Socom, and many more.
360 Exclusives worth mentioning: Gears of War, Halo, Forza, Fable 2, Viva Pinata, Crackdown, GTA4 DLC, Rez HD (Their best exclusive by far), Geometry Wars, Ninja Gaiden, etc..
- Better online, lots more options on Xbox Live, more content and better organized. - The PS3 online isn't bad it's just not as easy to jump from one game to another at the moment. More content? What do you even mean?
- Games in general run more smooth ,better frame rates - Fans of either console will tell you the same. Even with games that there are notable differences it's always insignificant and there are just as many that perfom better on the 360 as there are that perform on the PS3.
- Cheaper -both the console and games XD Prices of the console fair enough, but after you've bought all of the extras for the 360 + a subscription to play games online over the years you own your 360 the prices will be pretty even.
- Overall the controller suits most games currently on the market than the ps3 pad - WTF!? Another stupid argument. The controller layouts are identical and it all comes to down to personal preference. Personally I prefer the PS3 controllers, but that's not to say the 360 one suckz0rz and it doesn't suit games.
- Better Backwards compatibility - Hurray, you got something right.
- 360 has more games that can run in 1080p - Based on the fabrication of all of your other arguments so far I find this hard to believe. Proof please.
- 360 will always have better 3rd party support, as its easier for developers to make games for - I'm not even going to bother explaining why this one is wrong. All I can say is that it's not true either.
- Media wise, Xbox can play more file types and extensions - No. I actually think the PS3 can play the most filetypes at the moment. Does the Xbox 360 support Blu-Ray yet?
Well no they don't, the 360 has been out an extra year, so naturally it has more games, most stores in Liverpool I go to (Game,Gamestation, HMV, other game stores) still have a 360 about a 3rd or sometimes twice the size of ps3 section.
PS3 Exclusives Really Worth Mentioning - GT5 is still unconfirmed release date, it seems to be taking longer than Resident Evil 5, it does not look to be 2009, so I would not class it as an exclusive worth mentioning if its another 12-24 months before its released.
God of war 3 is in a similar position, although there is hype it may be out for Christmas 2009 but its unlikely.
Final Fantasy Versus is no longer an exclusive, 360 version due out
http://www.1up.com/do/newsStory?cId=3168704
Socom is not an exclusive worth shouting about, it's had mostly negative or average reviews
http://www.metacritic.com/games/platforms/ps3/socomconfrontation?q=socom
Tekken is not exlcusive either, its out on 360 too.
http://en.wikipedia.org/wiki/Tekken_6:_Bloodline_Rebellion
360 does have better online, by more content, it has more demo's, you can download Xbox orignals, were as on Ps3 you cannot download Ps2 games.
There is a huge selection of movies on Xbox live to buy, both HD and SD, so in content its a 360 win.
For the games look and run better on the 360 I will let go, the differences are to small to really effect enjoyment. If you interested in looking up close check this
http://uk.gamespot.com/features/6191251/index.html and this
http://uk.gamespot.com/features/6162742/index.html
The 360 is cheaper, its optional not forced on you, fact is you can have the console for 129.99 with a game and memory card and away you go. Games are of course cheaper for a few reasons.
first off with the 360 having a years advantage on the ps3 you can pick up older titles very cheap. Like Halo 3, Far Cry 1, Dead Rising, ForZa 2 and Condemed 1, all thise are under 20 pound if you look around.
http://gamer.blorge.com/2008/11/22/analysis-ps3-vs-xbox-360-controller-comparison/ okay I'll conceed here, that is personal opinion. I just moan about the ps3 pad, because when I was addicted to War Zone I really messed up my hands, my two thumbs were in agony after a long play because the 2 anolog sticks are to close togther, but yeah thats my opinion.
Well with the 3rd party thing, I'm basing the argument on the fact the 360 is cheaper and easier to develop for, so you would expect the 360 keep a bigger 3rd party support.
http://www.hardcoreware.net/reviews/review-348-1.htm
Once you have downloaed the Xbox live update to let you play unprotected media formats, it allows to play more files than the ps3.
Both consoles can stream media from a near by pc, but if you install Transcode onto the pc, while running the media centre with the 360 you can play anything. Simples.
http://dusda.vox.com/library/post/how-to-build-an-awesome-media-center.html
about the resolution thing, I really should of researched that more, turns out a lot of 360 games are native 720p, unscaled to 1080p, not giving the same quality of a game that is native 1080p.