They both use HDMI, at least on the higher end versions. The older 360s did not. The yearly fee is $50 for the 360.

I agree with Giz in that I just prefer the size of the controller. I am a fairly tall guy and have big hands and the PS3 controller feels too small in my hands and will eventually cause strain. But that is a personal issue.

There are a lot of games that are on both systems, but there are some exclusives. Here is a list of the games on both systems that shows what is exclusive to the system.

http://en.wikipedia.org/wiki/List_of_PlayStation_3_games
http://en.wikipedia.org/wiki/List_of_Xbox_360_games

I have friends that love one and despise the other. However I don't know anyone that owns one and loves the one they didn't purchase. They are both good systems and you'll have a great time with whichever system you decide to go with.