In the gaming world, being first to market has its advantages, but it also has some downsides. With its Xbox 360, Microsoft has staked itself a year lead over archrival Sony in the next-gen gaming wars and, just as importantly, the battle for living-room dominance--these powerful minicomputers also do double duty as digital media hubs. In those 12 months, Microsoft has managed to sell several million consoles, work through some hardware glitches, upgrade the system's internal software, and bring out a full selection of accessories as well as a few signature games, including the company's own smash hit, Gears of War. But that year has also given Sony time to polish its more ambitious--and pricier--PlayStation 3. Like the 360, the PS3 is available in two versions. Both feature the brand new Cell processor, a built-in Blu-ray player, and HDMI video output. The baseline 20GB version retails for $500, while the step-up deluxe model--reviewed here--boasts a 60GB hard drive, built-in Wi-Fi, a multiformat memory card reader, and silver trim for $100 more. Even though its original specs included even more features--dual HDMI output, for example--what's left is still a lot to throw into a new system, and the final product, expensive though it is, is quite impressive.

The big question, of course, is whether the PS3 is $100 to $200 better than the Xbox 360. From a pure gaming perspective, the short answer is: no, not today. As with any new gaming system, you're going to have to wait at least a year before you see game developers really start to get the most out of the PS3, and right now, there really isn't a game out there that's able to beat anything on the Xbox 360. However, in terms of design and in-the-box features, the value is here: the two versions of the PS3 are well worth their respective $500 and $600 price tags. Now, the bad news: the system will be in such short supply in the early going, you probably won't be able to get one for a while, even if you wanted to buy one. The good news is by the time you get your hands on one, Sony will have already made some improvements and added new features, and the catalog of games will have begun to be expanded.