I don't have any way to compare the two, so I'll tell you why I give my GameTheater a hug every night
1. Sound is superb mmmm hardware mp3 decoding
2. Volume Controls for both microphone and headphones on box.
(need to hear that last guy in CS, crank it up to max

)
3. USB .. no more short mouse cords if you have a usb mouse ... also great for gamevoice, which takes me back to the volume control point!
4. It's NEAT!!!
5. See number 4.
I haven't used the Phillips product, so I can't tell you which is better, but this might make it a bit easier
