I have both a PS3 and Xbox360, They compare favourably to each other. This product's offering as a strict gaming console is quite good. It has 3 excellent games to get you started. Furthermore, it has an excellent, wide ranging back catalogue of games from Mass Effect to Lost Odyssey (For you Japanese fix) to Bioshock, an excellent story driven shooter to Call of Duty 4 and Halo 3, two excellent arcade and some great tactical shooters like Gears of War. It also has plenty of good games coming out this year such as Grand Theft Auto 4 and Gears of War 2, Too Human (Action RPG/Shooter), Alan Wake (Thriller rpg).
I perfer this system over my PS3 because the controller fits much nicer in my hands. Its got some weight behind it. I also find that my thumbs don't strike each-other like on the Sixaxis controller. Furthermore the controller has Rumble, which I sorely miss on the PS3.
Technically the systems are both in the same league as each-other. Don't believe the hype the games are so close often you'll need a magnifying glass to tell the difference. Furthermore up till this point often the multiplatform games have been slightly better on this system so no need to worry about it's supposid technical difference to the PS3. Just one issue, the system has had most of it's RROD problems fixed (Under 10% failure rate and falling fast) I'm not worried, 3 years warranty is all the peace of mind I need.