Yes, but the PS3 is also out a full year after the 360 and costs $200 more. A year newer technology plus $200 more cost should equal OBVIOUSLY better performance. Given that, the PS3 should easily beat the 360 in the graphics department, without even breaking a sweat, but so far, the 360 has the better graphics. The 360 was just better designed. PS3 is a design royal fuck up.
Sony fucked up with the PS3. It's going to be funny watching the $600 PS3 try to compete with a $220 core, $300 premium 360 next Spring (a $100 price drop is a sure thing in Spring 07) while the 360 games will still sport the superior graphics. And to add more insult to injury, Halo 3 drops in November.