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Yamaha YHT-390 or Sony HT-SS2300

Which would you recommend for a set up that includes a 32 inch Sharp TV with 2 HDMI slots, A PS3 and Xbox 360 both running through HDMI directly through the TV?
Also would you recommend running the audio through optical audio or HDMI and why? Any help would be appreciated.
Did you already bought any of them??? ...if not, I suggest other options.

Neither has the ability to decode HD audio found on BluRay or HDDVD's; so in that case it doesn't matter how you connect them HDMI or optical/coaxial will be fine (for easy connection HDMI is better if you will use the AVR as a switch between PS3/XBOX and TV.

If you're set on getting one of this two...I suggest going with Yamaha, it has a separate AVR not like the Sony that is a player with a built in amplifier; to upgrade the Sony speakers you'll need to buy a new system :yikes:
 

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Yamaha, Onkyo or Denon are the three best choices. If you must go with a HTIB system the Onkyo HST5100 is the best bang for the buck. I know its over your budget but you will not be happy with anything less and will find yourself spending more upgrading sooner rather than later.
I agree with Tony.

Another option will be to buy used speakers and receiver, or look for some open box deals at stores like BB.

If you'll be using the system for games and regular movies...the Yamaha YHT390 is okay, I bought the 170 a couple of years ago to give it to a relative and was okay.
 
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