Originally Posted by nekrosoft13
First thing first, don't mention Games, I don't care which system is better for games.
My XBMC is starting to show its age, its still the best media center in my opinion. What it can do is great, but it simply can't handle some 720p clips and none of the 1080p video clips.
Which system: 360 or PS3 has better media playback capacity?
Assuming your in a supported xbox marketplace country, the choice of rent/download movies is currently better on the 360 (expect the ps3 to catch up sometime).
Otherwise, I can't speak for the ps3 (don't own one, ask someone else). However I like the Vista media center and the 360 does the job of a media center extender really well, as well the purchase of a 360 offsets the purchase of a decent video card for playback. (my MCE machine is headless).
One thing I noticed only recently, is if your watching tv through your 360, if you hit the info button you can change the aspect ratio on the fly as it hits your tv.