This is one of the main reason I went PS3
The PlayStation 3 comes with an array of data storage and transfer features. Whereas the PlayStation 2 only supported a memory card and the optional hard drive attachment (for a brief time), the PlayStation 3 supports numerous forms of portable media. The PlayStation 3 has 6 USB 2.0 ports, a memory stick slot, an SD slot, and, in stark contrast to many of Sony’s other consumer electronics products, the system actually supports compact flash. Sony even saved a space for a removable 2.5” hard drive.
The Xbox 360, in comparison, doesn't have as much in the way of media support. It has two memory card slots and a handful of USB ports that are rumored to accommodate a host of devices like the iPod, USB memory sticks, and even Sony’s own PSP. However, the real power of the 360 is in its networking ability. We can't forget that Bill Gates's new system can also reach across the network to access media from local, Windows-based PCs.
http://www.gamespot.com/features/6125087/index.html?type=tech