In terms of being the best online service for consoles.
I dont know what PSN is like but I know that its behind Live in a few different areas.
I'll list what for me makes Live so intuitive and flawless to use since the NXE which in itself showed what Live can do.
- Friends Lists.
Up to 100 friends can be on your list and also up to 50 of players you recently played with and you know what they are playing and when they where last on. Genius.
- Windows Live Messenger intigration
Now you can chat with people who dont even play games. This is a handy tool for me when my mates pop onto messenger.
- Voice chat
Chatting through your headset with up to 8 people while they can be all playing different games is very impressive in my book.
- Video chat
True, you do need to buy a vision cam but viewing my mate in Australia's new baby over the cam was great!
- Marketplace
The main hub of all your financial and download transactions, DLC, Themes, Movies, Music Videos, Demo's, Gamer Pictures and Arcade games all stored in an easy place to sift through at your leisure.
Add in the Avatars and the Exclusive Fallout3/TR Underworld/GTA IV DLC and you have a pretty persuasive argument that it wont be beaten anytime soon.
I don't have a PSN so I dont know for sure how far its behind but I dont think it will ever catch Live.