PS3 online network is free, but it has plenty of drawbacks. I find the match making in many games to be clunky and slow. Not to mention it was down for like 2-3 months straight this year, due to hackers (probably going to happen again). Xbox >>> (yes 3x) PSN.

Each system has exclusive titles. I am a Xbox fan, but there are a few games on PS3 I wish I could play on Xbox. I know a couple of my PS3 owning friends that same the same about Xbox only titles.

The enjoy the feel of the Xbox control compared to the PS3 control.

If you are willing to pay the $60 a year and want a better online experience I would recommend the xbox. If you dont care much for online play, either system would probably make you happy.