Well depends on how you look at it

, and what you want.
PS3 has HDD, rechargeble wireless controller and blu-ray (high def playback) standard (with the 499/599 price tag). The 599 also has wireless LAN and SD/flash card reader standard.
Sure an Xbox 360 core system is "only" 299, but...
40 - wireless controller
15 - recharge battery for wireless controller
90 - hdd
75 - wireless LAN
199 - hd-dvd playback add on
so that's 299+40+15+90+175+99=
718 euro for an xbox that equals the PS3, even if you buy premium with hd-dvd and no wireless LAN you are still at ~600 euro, same as the "expensive" PS3 (that has 60gb hdd, wireless LAN and memory card reader), the cheaper (499) PS3 gives you the same as the xbox 360 (20gb) with all the extra goodies for 100 euro less. Just an alternative to the "Xbox 360 is cheaper" view, it depends what you want...and how you look at it...