FailBox is a more gaming-orientated system IMO, whereas the PS3 is marketed as more of an "entertainment" system. Of course, they are at least equal in terms of games, with the PS3 being slightly better performance-wise. Plus wi-fi, wireless controller, 1080p, blu-ray and 40-80GB HDD (I don't consider the 20GB to be a serious attempt :razz
, all as standard. AND, support for all PS1/PS2 legacy games. On top of all that, it's a Sony, which is infitely more reliable than Microsoft. I still have the original PlayStation1 (the HUGE grey box), still works perfectly
PS3 looks far prettier, both as a machine (neither of 'em look fantastic, but the PS3 does look much more modern, plus it matches my PC case perfectly), and as a system. The FailBox is harder to navigate IMO, with it's fidgety tab yokes. PS3 on the other hand, has 6 or 7 clearly labeled icons that you can scroll between, each bringing up an equally well-labeled menu. The online system is free, and is just as lag-free as the xbox system, and has the same "friends" feature.
I've owned both, but only have the PS3 now, got rid of the FailBox. PS3 is just better