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I believe that MS has solved the hardware issues, but all 360s have a three year warranty to ease the public fears about buying the system.

As everyone has said, there are currently more quality games out for the 360 than the PS3, and a wealth of discounted and inexpensive used games for the system too.

I've had a 360 since launch, and I love it. I plan on buying a PS3, but primarily for use as a Blu Ray player.
 

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I have to agree with the above posts, while I am a Wii and XBOX360 owner. Currently the 360 is the better value from a gaming perspective than the PS3. The hardware failures have been resolved and as mentioned there is a 3 year warranty on the 360 to deal with this particular problem.

The value for the PS3 is more of a multimedia system (i.e bluray). In canada, I'm guessing you are here) the price of these movies is still crazy high. Also if it is for your son he more than likely will not care about that.

I guess more importantly it would come down to what games your son likes after all this is the reason for the purchase.
 

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Thanks for the info prufrock. How about the xbox 360 with the hard drive. I think its $100 more. What are the benefits to that hard drive. Or should my son just save his money and buy the basic xbox 360.
I wouldn't touch the new "Arcade 360". My saved games for Oblivion alone were well over a gigabyte. The arcade is to combat the wii, and that's all.

Get the "pro" bundle or go for the elite; the 120 GB HD would be nice and the black looks cool. I am not a big fan of the Halo themed console as I suspect it'll quickly get tiresome dealing with the colour. I can guarantee your son will sooner or later want a HD, and MS is killing us with their prices (I think it's $200 for the 120 separately).
 
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