PS3 has better graphics due to hardware, disc formatting, the way the everything is put together. Xbox 360 is not far behind graphically but dominates the PS3 gaming wise, and the Wii shouldn't have been thrown into the mix concerning graphics.
To answer this question you need to take a look at system hardware. ill make this one in simple english:
The videocard is the vital key for splendid images. A comparison
The wii videocard makes 243 million calculations per second The x360 card makes 500 million calculations per second The Playstation 3 card makes 550 million calculations per second
So you see, the Playstation can produce images of slightly higher quality then the xbox. although that difference is not so high. if you have a limited budget, i recommend you to take the xbox
Depending on the tv and hook up you use, the 360 and PS3 can have the same graphics. The Wii was never made for competing in the graphics department, but its fun factor is pretty good.
Alright, personally I hate PS3's but I do have to say their graphics are nicer than the Xbox 360. Sorry Leroy, but it's true. I own, and enjoy a 360, but the graphics are slightly less amazing than those of a PS3. However, the price was a big factor for me, and that's why I got a 360. Not to mention the fact that the 360 has a wider selection of games that appealed to me. While overall 360's are better than PS3's, The graphics on a PS3 are better.