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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.

u cant download while playing online

How many of you guys have actually used both systems online? Because I have used both, and I had them both for about a year, and I think it goes to XBL hands down. I no longer have an Xbox to enjoy XBL on, but that's beside the point.

XBL provides party chat, early DLC for CoD, less lag, a friendlier um...friend experience, an achievement tracking system that actually makes sense, and just a general better feel. The payment doesn't bug me, I just get the one year subscription cards from Wal-Mart.

I'v had both, Right now i'v only got my ps3.
i sold my 360 as i got bored of it, It feels like its only for 'kids'.
Yes its very good online ( Better than PSN ) in ways.


But PSN is free, We have other stuff that the 360 doesn't

That doesn't even make sense... Why do you think PSN is better?

Online gameplay quality = Microsoft
Best online: Sony (cause you don't have to pay money and ima cheap ass mutha fka)

I own a PS3.

I love PS3. It's good. It's just the exploits which have made is pretty bad. The good things about PS3: Free online, Premium avatars, Decent servers, decent GFX. I like it . Will always have PS3.

=D

Xbox definately doesnt get their moneys worth