By most accounts, Microsoft has the upper hand when it comes to online services. The Redmond giant has so far led the way when it comes to offering extra content for games, with the recent revelation that according to Rockstar, we should turn to the Xbox 360 for a more complete GTA IV experience. With its higher user base and deep pockets, Microsoft’s getting extra content for their games. It’s a bonus not just for the online service, but for the games themselves.

There’s no denying that the extra content on the Xbox 360 version of GTA IV will probably cause some people to choose it over the PS3 version, but it’s not quite time to give up on the PSN yet. Sony could be set to make some sweeping changes with a wild card we've not seen before on the console landscape: User Generated Content. Is it enough to give Sony's service the edge it needs?

Home

It's almost impossible to talk about Sony's online plans without going into Home. Game 3.0, an ambitious social networking app that'll bring together gaming and gamers. For it to be successful, Home has to exploit its UGC capabilities. Although being able to play and possibly buy games in Home is a nice touch, it just won't provide much gamer appeal. Console users probably won't be willing to wade through an extra level just to play or buy games they could easily get direct on the PSN or retail. The social space will attract some players, but to be honest it'll probably be surpassed by experiences available on the PC. Personalisation of your own space in Home, the ability to make and share your own PS3 game content: these are the strengths that Sony has to play to. The challenge will come in integrating these features: something that Sony so far has had little proven experience in doing.

The Hardware

Perhaps Sony's biggest advantage when it comes to UGC is the inclusion of a hard drive. Developers know that they can rely on a hard drive being present, meaning that they can make extra content generation an integral feature of the game, not just a tacked-on extra. This wouldn't be possible on the Xbox 360. Apps like Home and LittleBigPlanet would be tough. Microsoft wouldn’t be as keen to support games that needed peripherals that some Xbox 360 owners might not have.

The Games

This will probably be how most will experience UGC and again the PS3's got some ambitious projects on the way. The bizarre-looking LittleBigPlanet has some fantastic concepts behind it, making it easy for console users to make their own maps. The mod feature for UT 2007 is another huge milestone for console games development. Content from a dedicated community of PC players is now potentially accessible through your PS3. Modding adds longevity, playability and originality to game. Just look at some of the stuff that talented Half-Life modders were able to create. CS, anyone?

Toppling the giant

Of course, it's not all going to be plain sailing for Sony. Microsoft has demonstrated a knack for providing easy accessibly to features players want and paying the megabucks for it when necessary. Sony's plans, while ambitious, hinge on making the experience of creating and downloading extra content straightforward and intuitive. Sony hasn’t conclusively proven it can do this yet, especially when you throw Home into the mix. Additionally, Microsoft's user base is still a massive advantage, attracting developers to the online service to provide new, original content. In the final analysis, Microsoft provides one online service, Sony another. Should Sony fully leverage the advantages they have, rather than trying to imitate Microsoft's service, then Xbox Live could be in for some very serious competition indeed.

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