The Playstation 3 graphics are the best in the business at this time. The PS3 uses Blu-Ray discs that are graphic intensive and can hold up to 50 gigabytes. This dominates the Xbox 360 who have regular DVD discs that can only hold 15 gigabytes and you have to pay 15 dollars extra if you want HD. How much extra does Blu-Ray cost? Zero. The Playstation 3 has a graphics processer called the NVIDIA RSX or the 'Reality Synthesizer.
This makes the Playstation have a whole list of things that the Xbox 360 or the Wii don't.