I recommend XBox.
It's the most powerful, has the best online system, and has lots of reasonably priced ($20) "Classic" games that aren't that old at all.
If you are debating between XBox and PS2, I definitely recommend going with an XBox. I used to be a PS2-only guy, and even blew off the XBox, but then my PS2 crapped out and I bought an XBox. I love it, and the only game I will miss is the new Grand Theft Auto, but I read that it is likely coming to XBox eventually, so I think XBox is a good decision.
All the consoles have price dropped, which is one of the benefits of buying a system now.
Also, I don't recommend waiting until the next batch of systems are released.. There are so many great games already out, and still being released, that it seems like you will be missing out on a lot while waiting for the newer systems to be released.
XBox also is the best system for sports games IMO. Generally, they look the best, and if played online, have the best online layout and stability.
If you do go with an XBox, here is a list of good games that are worth checking out.
Lasererth originally posted this here, but I had saved it and will post the list here.
- Xbox Games to Consider
Halo
Prince of Persia: The Sands of Time
Tom Clancy's Splinter Cell
Project Gotham Racing 2
Star Wars: Knights of the Old Republic
Elder Scrolls III: Morrowind Game of the Year Edition
Grand Theft Auto: Double Pack
SSX3
Return to Castle Wolfenstein: Tides of War
Rainbow Six 3
MechAssault
Panzer Dragoon Orta
Soul Calibur II
Tony Hawk's Underground
Beyond Good & Evil
Deus Ex: Invisible War
GUNVALKYRIE (hard as HELL)
Max Payne 2: The Fall of Max Payne
Metal Gear Solid 2: Substance
SSX Tricky
True Crime: Streets of L.A.
Wreckless: The Yakuza Missions
Colin McRae Rally 3
Kelly Slater's Pro Surfer
Max Payne
Midnight Club II
Need for Speed Underground
Project Gotham Racing
Star Wars Jedi Knight II: Jedi Outcast
Tom Clancy's Ghost Recon
Lord of the Rings: Return of the King
Baldur's Gate: Dark Alliance
NASCAR Thunder 2004
Freedom Fighters
Hitman 2: Silent Assassin
Tom Clancy's Ghost Recon: Island Thunder
Metal Arms: Glitch in the System
Steel Battalion
Ninja Gaiden
Max Payne 2: The Fall of Max Payne
MX Unleashed
Harry Potter and the Chamber of Secrets
Hunter: The Reckoning
MTX: Mototrax
Dynasty Warriors 4
James Bond 007: Everything or Nothing
Phantasy Star Online Episodes I & II
Sphinx and the Cursed Mummy
The Suffering
Blood Wake
Rayman 3: Hoodlum Havoc
Gladius
Otogi: Myth of Demons
Red Faction 2
Armed & Dangerous
Crimson Skies: High Road to Revenge
Take care and good luck with your decision.