PS3 or 360?
Answers: Well the only PS3 book you're getting at that price tag is the 40GB model. Couple of issues next to that model being the singular one that is inwardly your budget. The 40GB model doesn't have any to the rear compatibility and if this is something that matters next the 40GB is not what you want. The 60GB has full hardware to the rear compatibility as it uses the emotion engine chip used surrounded by the PS2 for it's backward compatibility. If to the rear compatibility is not an issue and the card reader that the 60GB has that the 40GB copy doesn't, and the extra 2 usb ports are of no concern then walk with the 40GB PS3.
Reliability issues alone should steer you clear of the 360 at this point.
I'd step PS3.
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