You should really consider giving PC gaming a try. Im not saying to do this exactly unless you can spend the money, but if you build a good computer (maybe spend about 1400 for a clear difference in gameplay and graphics vs console) and you play a game that has been ported for PC and XboX or ps3, you would be amazed with the results. I know thats a huge price difference, but remember, it is not only capable of playing games, a computer like this can also handle the most resource heavy applications, and more multi-tasking capabilities than youll know what to do with. Plus new releases of games are usually up to 20 bucks cheaper than consoles. Also dedicated game servers for multi-player, not just players hosting from their connection anywhere in the us (which can cause horrible lag). Also for First Person Shooters there is no competition, PC mouse pwns all controllers for speed of aiming and accuracy. Go play gears of war on a PC against a 360 user and laugh at the ease of dominating (with practice of course =)
but enough of my jabbering, just ask post a reply if you want to give it a shot and need advice in hardware. =)
*edit
I meant to type up to 10 bucks cheaper =P
*edit
Ive had a long day - know gears isnt a FPS but third person is also much easier and quicker to aim and move etc once you get used to it (much diff than a controller)