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The latest iteration of the 360 pretty much fixed the RRD problem, not saying that it will never happen but if you keep the box well ventilated you wont have a problem.

I had all three systems up until a few weeks ago when I sold my PS3 to a buddy. All three systems have their advantages though and it really comes down to what your looking for.

The Wii is generally considered a casual console, its fun and its quick but it rarely holds my attention for long. Its great at partys and has alot of great party style multiplayer games. It has the largest selection of console specific releases and has a very novel controller setup. Its also the cheapest overall, both in console cost and game cost, however it is the least powerful.

The PS3 is an interesting console....Its powerful but expensive and also has the smallest offering of games, the play station online experiance is abysmal but that may change. If you have a huge 1080p TV this is definatly the way to go though, the games are stunning and couple that with the Blu Ray drive.

The 360 in my opinion is an all around winner. It has a great online experiance that makes up for its lack of next gen optical drive. Want to watch an HD movie right away? Stream it from the Zune marketplace in 1080p. The 360 also has price and game selection going for it. most games that release anymore come out on the 360. While the graphics arent up to par with the PS3 they are much better then the Wii. If you dont have an internet connection then your missing out on the 360 experiance.

So in short:

Wii - Fun, short, pretty console specific games

PS3 - Graphics power house

360 - All around bad boy and online king

I personally own just a DS, Wii and gaming PC.
From what I've seen PS3 is better than X360, due to it having better graphics IMO and free wireless.
DS gets a little boring after a while, you need to get the best games for it to be even worth it.
As for what games...
Plunk down the $20 on Amazon or Ebay and get an N64. Now go and get:
Ocarina of Time
Perfect Dark
Banjo Kazooie
Mario 64
Starfox 64
maybe Majora's Mask
That's all I've been doing recently...
But seriously, PS3.
Giggles,
Mr. Self Destruct