I could go into all the comparisons and such but you can do that for yourself online, there's tons of side-by-side comparisons of the PS3 and 360. Personally I prefer the PS3 because blue ray will become the next standard, the PS3 was slow to start but has more longevity and staying power, a proven track record with previous PS consoles and better branding/quality. Sony also tends to end up with larger libraries and better exclusive titles.

ps3,the online gameing is free,it has a blueray dvd player,the controlers are lighter and have a much better layout and it's the more powerfull machine.and as you have a psp you can connect that to your ps3 (i dont have a psp so i cant give you any more details on that sos).

PS3. No contest.

360 right now has a much better game selection,and although the ps3 has more power, most games written for it don't utilize it and tend to be the exact same resolution as the 360. 360 will have Natal system by this time next year. Controller layout is subjective, but I find the 360 controller much more comfortable and natural than the ps3. 360 will most likely break unless you get the Jasper chip set version which seems to be more stable. Unless you have a big hi def tv you'll be hard pressed to tell the dif between blueray and DVD, and even if you have a high def tv you'll be hard pressed to tell the diff between HDDVD and blueray. Blueray holds more data, but the norm now is dowloading the game to the internal HD for faster loading, so that is negated. Ps3 ultimately had the most potential, but sony and game developers just have not capitalised on it. I bought a 360 in the end for these reasons and they are much cheaper up front, even with the xbox live subsription, allowing more games off the bat or the awesome force feedback steeringwheel if your into raceing games (btw, GT5 release date for ps3 has been pushed back a million times now and probably won't eve make this year).