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Surely not a Forza vs GT thread! That's a first.
Why are we comparing two games that are exclusive to different consoles and therefore not even in competition with each other?
Deep Space on the PS3 is more of a threat to GT5 than FM3. You're hardly going to walk in to a gaming shop to buy another PS3 game and end up buying an xbox plus FM3 plus xbox live subscription etc etc instead are you!
Of course they compete. People buy PS3s for the sole purpose of playing GT5 and I've seen some people buying Xboxes to play Forza 3. Deciding which console to buy is a competition already. Not to mention those who have both consoles.
It may not be a competition as big as it would be if both were multiplatform games but they compete still.