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Its been 3 and 4 years and things are looking okay for the most part.

All three consoles are great. The games on all three are good. The Games fill up the normal Genras, FPS, RPG, Action, Platformers, Racing, Puzzle, and RTS. Though Wii has a noval motion tracking device.
Nothing mindblowing complared to last Generation. Nothing has changed from last gen with the game mechanics and types that have come out this gen. It is easy to compare the games from last gen to this gen as they the look and feel is the same just updated. Still a few notible games have been differfent.
Though next year will see things change, to what degree is yet unknown. Lets look at what ecah console brings with it and what has been done so far.

SO far on PS3 although it had a hard start is improving. Games are getting better as developers use the console in total. After 3 years it has these games as PURE exclusives.

Uncharted 2 - - - - Modern Action Adventure
Kill Zone 2 - - - - - Sci-Fi First-Person Shooter
Resistance 2 - - - - Sci-Fi First-Person Shooter
MLB 09: TS - - - - Baseball Sim
Uncharted 1 - - - -Modern Action Adventure
Litte big Planet - - - -3D Platformer
Resistance - - - - - Sci-Fi First-Person Shooter
R&C:CnT, - - - - - Action platformer
Comet Crash - - - - Strategy (PSN)
MGS4 Modern - - - -Action Adventure (3rd party P)
Deamons Soul, - - -Action Role-Playing (3party P)
Infamous - - - - - Modern Action Adventure (3party D)
Valkyria Chronicles - Action Role-Playing (3rd party P)
Warhawk - - - - - -Sci-Fi Shooter

Ture that Multi-platform do not hold up as well on PS3 as Xbox360 though the games are not totally different they just have some minor visual advantages, Still the same games play the same. Developers are getting better tools and thus next year Multi platform games will look more close to each other.

PS3 has pushed its hardware as can be seen with Killzone2 and more so with UC2 not only visually but action sceens, There is still more that can be done on PS3 in many ways.
Visuall there can be smoother graphics better textures, and over all graphical upgrades to be done in later games.
The SPU's are just now all being used and no program has run all SPU's to their full ability. And there are many tricks to be learned. (from developers mouths)
3D PS3 can run 3D stereoscopic technology and has made a point of it by next year.

it also started off rough and improven as time went on. after 3 years it has been plushed out with many abilities. There are still some abilities to add and it is still growing. It is still a very compllete online experience, its Free and will continue to be free. There will be an additional level which they will give perks for a cost. but its optional.

Home was something of a meeting place like a virtua Myspace, facebook... but has not been able to get that same feeling and ablilty for many people to conect like said social sites.

holds a massive amount of Content. It is just now being able to increase its speed to the 2X speed. Also, Blu-Ray live allows extra content. It also helps as a security device. It helps as it can stream a lot of data from the disk as it is uncompressed. Also with more peole getting HDTVs this comes in handy.

PS3 has an open architecher, The HDD can ealily be swaped with another Bigger HDD and is only limited by the amout that the HDD can hold. even solid state. (cost about as much as an Xbox 360 HDD, wait for Price drop)

wifi, Blu-Ray movies, Open MEMORY for SD, CF, Memory stick ...

has been deyled or lessend very much the ability to play pirited games. This is an advantage, as none or few games have been pirated. Also, it may take more years or never that the PS3 will have that same level of mass Moddings as Xbox 360.

More exclusives are coming to the system covering a wide range of game genera. Some have a high level of game development. Multiplatform games seem to be looking up for PS3 as more system tools are being adapted by developers. Though Sega has asked for Sonys help in dealing with the console. 2010 may still see Xbox 360 having slightly better looking games. Some of Sony's first party developers are said to be working on new IP. The future look if nothing else intresting with new add-ons and abilities. But like all things about the future we will have to wait and see.

GT 5 will use a type of head tracking with the Sony Eye camera. This allows for the cockpit view a ability to see left and right. Also other games may use this like Arma 2. has implamented it.

It is not yet clear how this will be implamented. Though with the abilities of PS3 it will be a tracking controler. How and will it work with 3D is unknown yet. We will find out more next year in the 4th year of PS3

So far Xbox 360 has plenty of great games. Many are 3rd party Exclusives. After 4 years MS has gotten Xbox 360 to a good position. Their future looks bright as they are making money like MS knows how.

Forza M 3 - - - - - - - GT / Street Racing
Halo 3 - - - - - - - - - Sci-Fi First-Person Shooter
Forza M 2 - - - - - - - GT / Street Racing
PGR 3 - - - - - - - - GT / Street Racing
Kameo:EOP - - - - - - Fantasy Action Adventure
Fable 2 - - - - - - - - Action Role-Playing
Banjo-Kaz - - - - - - - - 3D Platformer
Viva pintata:TIP - - - - -Virtual Life
PRG 4 - - - - - - - - - GT / Street Racing
GeoWars 2 - - - - - - - shoot em up (Live)
Mass Effect - - - - - - - Action Role-Playing (2nd party Developer)
Halo 3 ODST - - - - - - Sci-Fi First-Person Shooter (2nd pD)
Gears of war 1, - - - - - -tactical sci-fi shooter (3rd party Publisher)
GTA IV BoGT - - - - - - Modern Action Adventure (DLC) (3pP)
LFD 2 - - - - - - - - - Sci-Fi First-Person Shooter (PC) (3pP)
Gears of war 2 - - - - - tactical sci-fi shooter (3rd pP)
GTAuto: EfC - - - - - - - Modern Action Adventure (DLC) (3pP)
DoA 4 - - - - - - - - - 3D Fighting (3rd pP)
C&C 3TW - - - - - - - Sci-Fi Real-Time Strategy (PC Mac) (3pP)
Shdw Cmplx - - - - - - Sci-Fi Shooter (Live)(3pP)
Portal: still alive - - - - - Sci-Fi First-Person Shooter (3pP)
Tales of Vesperia - - - - - RPG (3pP)
Dead Rising - - - - - - -Horror Action Adventure (3pP)

Third party Publishers can be a timed Exclusive, as well as third party developers that own the IP can come out with a simular game on PS3. As several games that cane out only for Xbox in 2006-8 have now apeared on PS3.
Xbox 360 had the early edge on PS3. Being easier to develop for MP games chose Xbox 360 as the lead platform to develop on and port to the PS3. Newer games do not have as much difference and the future edge is unclear, though Publishers try to get the games to look Identical.

MS has not pushed its hardware with a ground up Engine built using all of Xbox 360 resources. Even Halo 3 used an updated version of the engine that ran on Xbox. Epic engines may take more advantage of Xbox 360 resources but it is unknown if it uses it all like a an engine built only for Xbox 360. Though it is easier to develop for and has system tools to aid in deveopment (XNA, Direct X9 a MS designed API) Yet it has taken 4 years and Alen wake is the first game to come out using an engine built from the ground up!! and it has been in development for 4 years. while Bungie is building a new engine for Halo: Reach. So we will soon see if there is a little or a lot more in the Xbox 360.

Though many developers have stated that it is reaching its limits. Though tighter programing, new ways of using resource, many games will still imporve on graphics and game menchincs, we will see by next year with Alen wake and later with Halo: Reach.

Live is a full featured online games experieance. It has a slight lead over PSN with the amount of people who have headsets, cross over in game invites, in game voice chat. Also there is more content for Xbox live arcade, and over all. But not by much. The main distract is that MS charges for players ability to access the games that are already paid for, and on the disk.
How much people use it or is it worth it is an indivudal experience. They could just make the oline MP Free, take out CG Invites, In game chat and have that for those who want it.

HDD could be a problem depending on how you look at it. each console that launched has different amounts of HDD space (same as PS3) or not (arcade). To replace the HDD it cost $$$ compared to other HDDs that can be bought same size or bigger. There is a mod that would allow people to replace it but Recently MS has baned anyone who has modded there Xbox 360 for what ever reason.

Memory card are proriatery if want to transfer saved games. you can not use an USB thumbdrive or any other type of deveice other than regulated MS approved devices. MS is not being suied over such shananagans.

MS has just kicked 1 Million people from live with modded Xbox 360's. This is not the full number of people that have moded Xboxes just those that got cought. Others who have modded Xboxes do not go on Live. While some have updated their console so they do not get caught. Still others have 2 consoles a liget console for Online games and a Modded console for Pirated games. It is unknown how many people have their console modded but what is knowen is that the process is easy and not really expensive.

The future looks good for Xbox 360. Games are being developed at a stedy pace. Multi platform games still look better. Live still making Microsoft plenty of money. Several third party developers are working on either timed exclusives or true exclusives. MS First party developers are also hard ar work working on future Natal titles, and non Natal titles. Fable 3 will be a great game that includes Natal. Rare is also working now on several titles.

is a device that is great at tracking body movements. It can track several people at the same time. It looks like it will work great at certin types of games. I have yet to see if you wanted to sit for a while and play if it would still work or must people stand to get it to work. I just can not imangine standing for hours playing a game.

3D in gaming looks like it may add something or not??? It is unknown if Xbox will be able to run games in 3D with 3D sterreoscopic images in game, or if there is a work around??

In the end both of these consoles provide great game play and cover all the Geners with plenty to chose from. People making a dision on which to get should be happy with either choice. They both take a different view on Gaming, but in the end if you are game centric then the best choice is to get both.