Microsoft was extremely successful with the release of the Xbox 360, but primarily because of its original success with the Xbox. Wether or not the Xbox 360 (compared to the Wii and PS3) is right for you all depends on what you're looking for. Xbox 360 has up to date graphics, as well as games. The sound quality is exceptional, and the gaming experience is equivalent to that of the PS3. However, the PS3 has proven to carry slightly higher graphics than the Xbox 360. I would say that the controller for the Xbox 360 is the best of the consoles, simply because of its shape, which makes it easier to grip. The size of the Xbox 360 has changed over time. An original Xbox 360 console has proven to be heavy and hard to move around, while the new "Slim" version is lightweight and much smaller.
While the Xbox is definitely more affordable than the PS3, a fee is required for online gameplay, while the PS3 charges nothing for online play. The Xbox's menu screen's and online layout is much easier to use than the PS3's, however.
One of the major problems with the Xbox 360 is that it constantly breaks down. The "3 Rings of Death" occur more often than not, making your console completely unplayable. While Microsoft will fix it for free, the return time is never consistent, and has taken anywhere from 2 weeks to 2 months.
But what made me finally sell my Xbox 360 for a PS3 was its options of games. While they do carry some exclusive titles such as "Halo" "Fable" and "Gears of War", the PS3 carries some games, such as "God of War" "Medal Gear Solid" and "Demon's Soul's", that simply can't be rivaled.