360 and PS3 go (commercially) head-to-head

(Or maybe it's toe-to-toe.)

Regardless, while a lot of GDC Europe and Gamescom did not float my boat (and Microsoft's presser certainly didn't), I am excited by the recent Sony / Microsoft tête-à-tête.

What tête-à-tête, you may ask?

Why, the $299 PS3 "Don't - call - me - 'Slim' - 'cause - Sony - says - it's - just - the - new - PS3", and the $299 Xbox 360 Elite.

So, now, both consoles have a 120Gb hard drive, both have HDMI, both are at the same price.

Now things are getting interesting.

The new Ps3 "not-slim" is smaller than the original PS3. But it doesn't have backwards compatability (which the 360 does for a boatload of titles, along with full game downloads). Online play is free for Sony-ites via its online service (PSN), whereas Xbox 360 charges $50 a year for access to Xbox Live (but you get a lot more content for that fifty bucks, so arguably you get what you pay for).

The PS3 has built-in Blu-ray support, and the 360's HD-DVD add-on is a dead goat (or something). But Xbox has streaming Netflix exclusivity, which is huge for me (and it has Netflix party, but in it's current state, I call a negative).

Microsoft has (for me) way more compelling arcade titles, and I like their indie games marketplace (though the crap to more-like-gold ratio is high). Sony is getting ready to launch "minis", which sound like cheap(ish), polished short-attention-span-theater-style games (which sounds great). But those are likely just PSP.

Sony looks like they're offering just the $299 version as a single SKU offering; Microsoft has both the Elite at $299, and the Arcade at $199 (which is cheaper than the Wii).

So ... does this change anything for you? Sway you one way or another? PS3 because of the new, smaller (not slimmer) form factor? Xbox 360 because the Elite is now $299?

Let me know in the comments. Though things could get more interesting. Microsoft's got more levers (what if they made Xbox Live cheaper? Free?). Sony could actually do something on their box (media wise) with all of the film, audio, and distribution studios and companies they own.

Etc.