[Lag]

Seeing as your kids are still fairly young I would recommend buying them a Wii. I think there is a lot more younger orientated games, and seeing as how you said you and your husband won't be playing too much I don't see a need for you to get anything different.

Now one of the advantages the PS3 is the ability to play Blu-Ray disks, as well as yet another price drop bringing one of the PS3 versions down to $400. There are the Gran Turismo series and Metal Gear Solid is coming soon too. But both are games I wouldn't recommended for kids that are just 3 and 5

On to the Xbox 360. I see no reason to buy this for your kids unless there were a bit older. Maybe anywhere from 10+. It does have the Xbox Live Arcade, where you can download plenty of small games. Now along with the Xbox 360 comes Xbox Live. But I don't think your kids are old enough to really enjoy that. And of the course the Halo trilogy (My personal favorite).

Now all of what I just said was me trying to be as un biased as possible. Now, I'm only 16 (and an avid gamer), one of the things the really makes a gaming system to me, is strong online play. I don't mind paying the extra few bucks a month for Xbox Live. A lot of people say that the PS3 is better and some say the Wii is better. Well, there is a fan boy for everything.

I guess I've strayed a little off topic here, but I think you should go for the Wii seeing your kids are still pretty young and it has some fun family safe orientated games. On top of that it's the cheapest one of the current three systems. Not to mention it's a very interactive system.