PS3 or Xbox 360?

[thekingof8]

I've heard some horror stories involving the PS3 (ie: account theft, Yellow Light of Death).

[SNES Chalmers]

Yeah, Sony's servers were hacked into by LulzSec earlier this year, and the whole PlayStation Network was brought down. While it was said that credit card info was comprimised, I don't think there was any evidence that anything was stolen and/or fraudulently used. Sony eventually brought the service back up, and it's supposedly more secure now.

As for the Yellow Light of Death, it's a fairly rare occurance, happening more with the original models than the new Slims, but it does exist. It's comparable to the 360s Red Ring of Death, which is actually more famous given how prominent it was a few years back.

Both these things could just as easily happen to the 360 as they can to the PS3(no one is saying that XBox Live couldn't potentially be hacked), so I don't really think these should be deciding factors in your choice to not buy one or the other.