Both of these next-generation consoles could cost $400 or more.
If that's a little out of your price range, there is good news.
The current systems' prices will inevitably drop, making it a great time to purchase a more affordable PlayStation 3 or Xbox 360.
If you do take that route, you'll want to know which console is right for you.
Here are the basics to consider when purchasing:
Video Game Selection
Both systems can play the majority of video games; however, when it comes to a selection of exclusive video games, PlayStation 3 has a broader collection of big console titles.
The PlayStation 3 has major titles like "God of War," "Little Big Planet," the "Infamous" series, "Resistance," "Ratchet & Clank," and all of Naughty Dog's releases including "Uncharted," and the upcoming game "The Last Of Us." Sony is also coming out with the most anticipated game of the year, "Beyond: Two Souls," featuring the voice talent of Ellen Page.
Among the Xbox 360's exclusive title count, its two biggest series are "Halo" and "Gears of War." They also originally had the rights to "Mass Effect" until creator BioWare was acquired by Electronic Arts and the series became available to Sony.
Winner: PS3. While "Halo" is one of the most popular games out there, most of the Xbox exclusives are smaller games limited to the Xbox LIVE arcade. Plus, we can't deny the power of Sony's relationship with Naughty Dog. Since launching with "Crash Bandicoot" back in 1996, they've gone on to develop more mature and detailed games year after year. If you're the ultimate gamer looking for the best games and the best graphics, look no further than the PS3.
If you're looking for the bare bones 4gb system you can get the 360 for $200. However, if you want to add a few games and a wireless controller, or are looking for a bigger storage system, the console can price up to $299. Add in the Kinect motion sensor and you're looking at $400 or more.
The PS3 starts out a little more expensive, but the cheapest version of the console comes with 250gb of storage and a controller. Plus, you get that built in Blu-ray player with the game system. Like the 360, more expensive versions come with various game bundles.
With the PS4 due out this fall the console will most likely see another price cut, with some speculating it will drop to as low as $144.Microsoft is also set to unveil its next system later this year, too, so we're sure to see the price of the 360 lower as well.
Winner: If you're looking for a lot of storage space for a better price, go with the PlayStation 3. The console also has the added bonus of a Blu-ray player.
Xbox LIVE vs. PlayStation Network
Simply put, Xbox makes you pay to play while PlayStation offers online gaming free.
In order to play Xbox 360 games online or access its rich entertainment offerings, you need to have an Xbox LIVE Gold account which costs $59.99 a year.
The 360 also offers a free Silver membershipif you have a broadband and hard drive, but it's pretty cut and dry. While it allows you to download content for games and access the Xbox Live Marketplace, you can't play online. Rather, you can watch and talk to others play on Xbox Live.
If you want to play online, you'll need to go Gold.
When the PlayStation 3 initially debuted in November 2006, its major drawback was its near $600 price point. Though it's the slightly pricier console, as soon as you purchase it, you're set to log on to the PlayStation online network to chat and play with other PS3 owners free of charge.
Sony had a big hacking issue in 2011 when more than 70 million customers' private information ranging from addresses to credit card information and account passwords were at risk.
Soon after, Sony suffered another attack compromising the info of nearly 25 million users and was since fined nearly $400,000 in January for what was considered a preventable attack.
Winner: If you plan to play online, the 360's Xbox Live membership can get pricey after a few years. Though the initial price point of the PS3 deterred consumers, in the long run, the system makes up for its costs by allowing a free online network.
The Kinect vs. The Move
Xbox's motion sensor Kinect allows gamers the ability to immerse themselves into gameplay with or without friends and without controllers.
Since its release, the 360 has really become the entertainment hub on which to watch Netflix, ESPN, movies, and television shows in addition to gaming. The voice command system or flick of your hand from the couch can easily allow you to scroll through content to view, stream, fast forward, or rewind hands free.
In response, PlayStation came out with its own motion controller, Move, a handheld mic that allows you to "move" onscreen as long as you hold it.
The controller isn't that different from the concept of a Wii remote and is primarily used to enhance game play.
Both are extras that don't come with the consoles unless you buy more expensive bundles.
Winner: The Xbox's Kinect feature is hands free. There's something more impressive about a camera that will capture movement of your entire body as opposed to a joystick. It's voice activated commands allow us to seamlessly navigate Xbox Live or any app without a controller. Forget Smart TVs shown at CES, the future is already here.
In the end, it boils down to what you're looking for in a game console.
If you're a hardcore gamer searching for a system with plenty of hard drive space, opt for the PS3.
If you're looking for a family-friendly entertainment hub where you can easily make the switch between gaming and television, the Xbox 360 may be your best bet.