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Step 1
Research each system and its features. You should have a solid understanding of both systems and their capabilities before you make a choice.
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Step 2
Think of what you want out of your console. Do you want to use it strictly for gaming and if so what types of games do you prefer? Would you like to use it as a dvd player or to stream content like movies, tv shows, ect. The Playstation 3 is a blue ray player which is a big bonus if you are also looking for a high definition dvd player.
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Step 3
Research the types of games you prefer and see what system has a better line up. Are there games you really want that are only for one system? Most sports games are on both systems but each has exclusive titles that you should consider in your decision.
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Step 4
Decide if you will be playing online. The Xbox 360 charges for their online service while the Playstation 3 offers it free of charge. The Playstation also has a built in wifi connection while the Xbox charges $100 for it. The Xbox can be connected to the web via an ethernet connection. The 360 has a more extensive online experience that I think is worth the annual fee.
