for XBL, you have to pay monthly. with PS3, you dont. its free. forever. PS3 has more games. better graphics. and yes, i know for a fact that it does, because i have both a PS3 and an xBox. and a 73" projection T.V. PS3 is WAY better than xBox. the PS3 controllers are a lot smaller and less bulky. so IMO. PS3 is the way to go.