There's been a lot of chatter on the net about the next generation consoles coming out. Both Sony and Microsoft (and possibly to a lesser degree, Nintendo) are big players in this.
Here is the short version:
XBox360: 3.2 GHz 3 core on die PowerPC, 1 TFlop floating point performance, 512 MB RAM, ATI graphics, 500 million triangles/sec, 12X dual layer DVD, WiFi (a/b/g), 3 USB ports, up to 4 wireless controllers, 1080i video, 5.1 digital audio, backwards compatible on some games, ...
PS3: 3.2 GHz Cell processor, 2 TFlop floating point performance, total of 512 MB RAM, NVidia graphics, Blu-ray disc, WiFi (b/g), 7 USB ports, up to 7 Bluetooth controllers, 1080p video, 5.1 digital audio, full backward compatibility, memory stick, SD and CF (really? that doesn't sound like Sony) memory slots ...
Based purely on tech specs, the PS3 wins. BUT ...
Many of XBox's parts of off-the-shelf (so to speak), and are at least readily available. If Apple can make a profit selling the Mac mini at $400, I think Microsoft won't take too much of a hit if they priced the console at $300-$350 at release time this year (maybe a $200-300 loss leader).
Sony, on the other hand, is using technology that are not even in production yet. They just announced the Cell processor a couple of months ago, and they probably haven't started mass producing it yet (and the 7 or 8 cores on die is going to make it more expensive to manufacture). The Blu-ray player is also going to put a big dent in the cost (considering Sony's Blu-ray player currently sells for $2000 and the recorder for over $3000 in Japan, and a single disc costs $28 to buy right now). Even if the price drops to 1/2, or even 1/3 of today's price in 10 months, that's still over $1000 of hardware, and quite a markup on the cost of the discs. Sony may have to take a big loss leader in order to bring this into the affordable range (people won't want to buy $800 consoles, no matter how powerful it is).
There's another thing I don't quite get. Sony wants to do 1080p standard. This doesn't really make sense to me. The average cycle between new generations of players is ~3-4 years right now. Currently, it's hard to even buy an HDTV that will do 1080p (trust me, I've looked), and the ones that can are EXPENSIVE. I think it will take at least 2-3 years before 1080p will even become popular enough that common customers will start buying TVs that will do 1080p, and by then, it's time for a new generation. It just seems overkill.