I've played the PS3 and I wasn't impressed. At least not $500-$600 impressed. Try a friend's before you buy it. Also, the unit is big and throws off a lot of heat. I would wait for a price drop and a redesign. Then again, at $60 a pop, I don't play brand new games anyway.
There's lots of talk about the Nintendo Wii - it comes in at $250 for the unit with some pretty good games available.