According to Sood's sources, "many many months ago," Microsoft set out on a Xbox Live project that would let PC and console users interact on some form of united multiplayer platform – a grand idea on paper. In practice however, it's said that PC gamers "destroyed" console players every time.
The slaughter was so bad, Sood says that Microsoft even pitted "mediocre" PC gamers against "the best" console gamers in testing, and the results were unchanged: the keyboard and mouse prevailed. It's not clear what titles were played, but Unreal and Gears of War are mentioned.
Displeased with its findings, Microsoft supposedly cancelled the project to spare its Xbox team and players the embarrassment. I think most of us can agree a keyboard and mouse is more precise, but what do you prefer and why? Feel free to preach the virtues of your input device in the comments.