Here's a interesting read from a GameFAQs.com thread.
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Ok, so incrediblistic said: "As for the processing power breakdown by SirNathaniel; I'm not going to argue numbers. If you truly believe that the 360 is more powerful than the PS3 than explain to me why the first generation of 360 games looked like Xbox 1.5 games while PS3 games look very close to second generation 360 games? Don't believe me? Take a look at a screenshot of Perfect Dark Zero and then look at Resistence: Fall of Man or Heavenly Sword."
So you simply compare ps3's launch titles that have been in development for a longer time for that particular system than pdz and other 360 launch titles were dveloped for the 360, so OF COURSE we're seeing a big difference right now, especially with pdz. PDZ was origianlly being developed for gamecube, then MS comes in and buys Rare, makes them start working on it for xbox, cnacels it and makes them do a rush job on a 360 version. Did you not know that most 360 launch titles were launched? Not to mention none of them were given new engins such as unreal engine 3, like how the ps3 launch titles have been given such engines. I may be an xbox fan, but even I think microsoft was retarded to not give their developers devkits and good graphics engines earlier. Why not compare R:FOM to call of Duty 2's graphics eh? pretty close there. Not to mention ps3's launch titles have had an extra year to be developed, uprgaded, etc. therefore ps3 launch titles realy have no excuse to not look as good as they are, thats just the truth.
On top of all that, what does it matter that the 360 launch titles looked like "xbox 1.5" as you said? It means absolutely nothing about the system's power, the developers had no way at the time to take advantage of that power. But now...look at Gears of War and other new titles such as those being produced by Ubisoft and other great developers that have been working fastest at learning the power of the systems. Epic, which is a multiplatform developer has stated that Gears of War is not possible on the ps3:
"Since Epic is working with the PS3 hardware and the Xbox 360 hardware could Gears of War ever work on the Playstation 3? “256 MB of RAM makes a huge difference. There is no way we could ever do Gears of War on 256, we had trouble fitting everything on 512MB. We pushed the 360 to the limits.” Another member from Epic’s team chimed in with the fact that there are currently more Playstation 3 programmers than Xbox 360 programmers. 'It (the PS3) is in our future. We always had plans for the Playstation 3 and an engine already runs on it.'"
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XBL ($50 per13months) vs. Ps3 Online (free)
XBL is way ahead as we all know it, and in the long run, is not only free, but save you more money than you spend on it:
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