Yeah, you pay like $50 a year for LIVE (which isn't that bad for the service), but then if you want to receive additional content over live (i.e. movies, T.V shows, buy games, etc.) you have to use Microsoft Points...which cost money to get. A note on the Red Ring of Death (RRoD): That really mainly plagued the older model 360's. The new version (has the HDMI output) should have fixed that issue. My first one RRoD'd and I got a brand new one with my Best Buy Service Plan. People who ship them off to Microsoft get refurbished model's and have a chance of experiencing the problem again. So far I've been very impressed by the newer version in terms of cooling and quietness in comparison to the older... note: When I say "newer version" I'm referring to all the models of 360's (elite, pro, arcade...whatever they call them now). They updated them so they all (except maybe arcade) have HDMI output...not just the elites. Like I said before, if you want it for purdy DVD's, go PS3 for Blu-Ray. If you want it for gaming, I'd say go Xbox360. 360 is known to be more "developer friendly," they update fairly often (both games, and console firmware), and you have oodles of content at your fingertips with LIVE. Oh, game demos are free...which is nice if you want to try a game before you buy without renting it. In terms of visual quality with games, honestly, there is really next to no difference except how they handle lighting/shadowing. They both look excellent. Frame rates are great on both as well even though early on the 360 was better in that category. So really, it comes down to your own personal opinion and what you're looking for. They both share many games and have a few of their own platform titles. Either way, there are many benefits to either system. I bought my Xbox360 on the PS3 launch day...that was the money I had saved up for a PS3! ...I've not regretted it once. Good luck!