You guys are arguing semantics and it's a bit silly.
Settle the argument by just agreeing that the XBox is a console that uses off the shelf (more or less) PC components while the PS2 is a console that uses largely proprietary components.
Both are computers as the definition of that term is a bit nebulous. Calling the XBox a PC is precarious as well because MS could possibly argue that it has to run Windows to be a PC (though Apple would dispute).
In modern parliance, most people understand x86/Windows when you say PC and PPC/OSX when you say Mac (for example, though Linux complicates things).
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