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This thread is a debate for Xbox Live vs Playstation Network. This is not Xbox vs PS3 this is about the user multiplayer features, advantages and disadvantages.
I put my personal opinion in the spoiler here.

The Xbox has always been really, first on the scene with everything. They were the first to have voice chat, avatars, a friends list capable of storing 100 IDs, an in-depth achievement system, Netflix, and Facebook and Twitter access. Playstation Network always seems to be a bit slower on the scene with these as they had a later start. They now have all of these features except across game chat which isn't too big of a deal.
XBL and PSN both have long lists of DLC available. Xbox typically gets cross-platform DLC before PS3 does, but usually that content makes its way to PlayStation eventually. However, both tend to get exclusive content, even for cross-platform titles. Recent examples include the Dead Money expansion for Fallout: New Vegas (XBL) and free bonus content for Assassin's Creed: Brotherhood (PS3).
Microsoft has an edge in the internet world, having such a long history with PC software. In fact, the original Xbox brought online multiplayer to consoles long before it had officially caught on. Xbox also has "The Big Three:" Halo, Call of Duty, and Gears of War. Fans of multiplayer will tell you that these are the kings of the online console world.
Sony also offers a pretty strong multiplayer lineup nonetheless. While Halo and Gears of War are Xbox exclusives, Call of Duty is also available on PS3. And PlayStation has its own library of exclusive multiplayer games, including the Resistance series and the Killzone series.
While there is a free version of Xbox LIVE, online gaming requires a yearly fee. And that fee was recently increased. On the other hand PlayStation Network, offers free online play. PSN users have the option to upgrade to PlayStation Plus, but they aren't required to do so in order to enjoy online gameplay.

In conclusion it seems to be a tortoise and hare situation.
With the Xbox, Microsoft paved the way for online console gaming. However Sony will not step down from the position of console king without a vicious fight. With its free online play and back catalog of classic games from the PSOne era, PlayStation Network offers a slightly better bargain. Microsoft needs to strongly consider moving online multiplayer from an Xbox Live Gold exclusive feature to the list of Xbox LIVE Free features or it may find itself being beat by Sony's Playstation Network.
So I would say it is pretty even however Sony does offer a slightly better deal.

i think the ps3 internet connection is crap. I see a huge difference since i got a xbox last christmas. If the online was £20 a yr would be more worth it. It seems microsoft is buying sony so ps3 users will have to pay eventually

Love Xbox Live but it's sad that you have to pay so I prefer PSN more than Live.

the only thing xbl gots on us is the cross game chat other than that ps3

All my friends that have a ps3 and x-box say ps3 is wayyyyy better so......

Ps3 has so many more features and it alot more sompler to use than x-box

I think they are both good.

The old saying "you get what you pay for" applies here. As an owner of both consoles, I can one hundred percent say XBL is better. It has incredibly better servers, hands down. Actual, dedicated servers hosted by Microsoft, whereas PSN servers are free and they are third party. I experience little to zero lag while playing online because of the network itself, only when there is a bad host. Whereas on PS3, I constantly have trouble connecting to other players, or maintaining a good connection. I had Xbox first. I played CoD4 on Xbox. When I got a PS3 and CoD4, I was absolutely appalled at the horrible quality of connections. Not only that, but the first time I went on to play MP I had to reset my router because of the shitty downloading game settings. never had that problem with XBL servers. And everyone get's going on the $60 a year price. Come on, it's $5 a month. Skip your coffee for one day and go buy some XBL.

Also, original poster, your post is relatively biased as you clearly call Sony the console king.

I'm not a fanboy and I have PS3 but I have to go with Xbox as well.

I'm still against the whole paying $60 a year. (My coffee is very important :carling My opinions are as follows: Microsoft cares more about their consumers, while Sony just wants to beat them in sales. Xbox has more features and better online but I'd still rather get PS3 and have free internet. I think Xbox USED to have better console exclusive games but Sony is beating them in that category now.

They get cod dlc's sooner. I say this because of how big the Call of Duty fan base is. I think Sony could have made some bank and get one step closer to going over that hump to beat xbox if they got the maps earlier.

I probably have other thoughts on this matter but I'm half asleep right now.

I love sony but yea same as melo....