How to record Footage from PS3 or Xbox - NEW

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You will need:
1. A computer
2. A Capture Device.
   An HD Device like the PVR or a computer capture card (possibly needs a computer upgrade)
3. The right cables

If you've ever wished you could do better than recording the screen with a video camera, you've come to the right place.
In the $30-$50 price range you'll only be able to capture DV quality footage. (which is still considered HD online, by Youtube etc. (720p).)

To get good HD footage you'll need something better. Like the HD PVR2 by Hauppauge.

image credit: Amazon inc.

The newest PVR device makes it super easy to record your footage.  You can choose a quality up to 1080p30 for recording, while the footage streams to your screen in full resolution  1080p60, with "no delay" video passthrough. The device sends the files to your computer via USB. Comes with the cables, USB and a 6ft HDMI cable to connect to the TV. And with the "no delay" passthrough you don't have to worry about having to split the signal to watch yourself playing while recording. Like you will with the capture card method below.

Capture via a capture card - HD or SD?

Utilizing the speed of your computer, and with a good capture card, you can potentially capture better than 1080p30 quality. You'll need a capture card like one of these.
You'll need a way to split the footage to watch yourself playing while the computer records. Since the vide cables will go into your computer.
Any delay depends on the speed of your computer and the capture card.

You'll need an HD switch/splitter with at least 1 input and two or more outputs.
And two extra HDMI cables.
The setup here is somewhat simple. Your Consoles HDMI cable goes into the splitter's input, and the extra HDMIs go into the outputs, one going to your TV and one to the capture card. Then you'll need a editing software (or Quick Time Pro) to capture.

Recording with Quicktime Player

Quicktime is a pretty useful video tool in many ways (especially Quicktime Pro).

Go to File -> New Video Recording. 
Click the downward pointing arrow close to the record button somewhere.

There you can select your video device, which will be your connected cameras and other devices your computer recognizes. If your device or input isn't available look for its installation instructions (driver files) on a cd that came with the hardware. Install them and then try again in Quicktime.

When you click the record button the file is automatically made (in your Movies folder on mac) and will be ready once you stop recording. Hence there's no more File -> Save as.  You can (rename and) open the file in your favorite editing program. Or use the quicktime Share functions to send to Youtube and other online networks—it uses the right (or good enough) compressions.

I haven't used the latest Share functions with Quicktime yet; and I think they removed my favorite "save for web" function, which let me make a file with the settings I wanted. Using Apples program Compressor you can select your own codec etc. if your final file is too big for what you need.