The PS3 has better hardware than the 360.. that is a fact that no one can deny, better processor, better graphics card and better storage media (blue-ray) which can carry more than "TWICE" the data a double layer HdDVD, thus there is more potential.

how ever, if game designers dont take advantage of that and use it properly.. that isn't the machines fault, the PS3 has more potential than the 360 and with time game designers will take advantage of that and then we will see the true difference between the 2 machines..