My vote goes to the Xbox 360. I bought one on Boxing Day last year and I've been really happy with it. The hardware's good, graphics/sound are very impressive and I *think* the current Xboxes are shipping with HDMI outputs. Online content/game play is the best out of the big three systems ... I really like how easy it is to join in games with friends and all the multiplayer options out there for most games. The games themselves have impressed me a lot.

I don't know what kind of games you like, but take a look at Gears of War, Bioshock and Halo 3. Those are three of my favourites. Also check out EA Skate, Portals (part of The Orange Box) and ... oh, let's go with Mass Effect (Honourable Mention: Viva Pinata). It's not out yet (I don't think so, at least) but I'm also really looking forward to Army of Two.

Oh, as of the latest firmware update you can now stream .avi files off a computer and control them via the Xbox. For me that means when I download shows/movies Sara and I can watch them in our living room on the TV vs. having to watch them playing off one of our computers in the bedroom. Bigger screen + comfy couch FTW!