MSFS or X-Plane...depends entirely upon what you intend to do with it. For general entertainment, yeah, MSFS is probably better. Though X-Plane has rapidly narrowed the gap in recent releases, the visuals in MSFS are generally better--with one glaring exception: flight instruments. In this area, X-Plane's OpenGL graphics engine kicks tail all over MSFS. On even the best computers, the flight instruments in MSFS are jerky, updating only twice per second or so. X-Plane on the other hand updates its instruments at the same rate as the overall visuals, which on high-end machines can be upwards of 100 frames per second! This yields a fluidity of motion for the instruments that is much more true to life and makes IFR work eminently more enjoyable. So for IFR training/practice, X-Plane takes it hands-down.
There are other differences under the hood which may or may not factor into your decision. MSFS has a stunning weather engine and the associated visuals are very impressive. Rather than determining aircraft performance from look-up tables as MSFS does, X-Plane does the math to compute actual aerodynamic performance in real time, even for the propeller and aircraft body surfaces! Because of this, X-Plane is a tinkerer's dream as you can easily build your own aircraft from scratch and then test-fly it! I'm still waiting for someone to gin-up a brick with a J58 strapped to it. If you're not so-inclined, MSFS has a much larger user community that puts lots of energy into making planes you can then download from places like avsim.com.
If you just want to fly a 747 under the Golden Gate Bridge, MSFS is probably a better choice. This isn't to say that MSFS isn't useful for IFR purposes, I just think X-Plane is better. Be warned though, that X-Plane is much less consumer-friendly. Laminar Research is essentially a one-man company, so the product doesn't have the polish to it that MSFS does with its 100+ developers/managers/marketers.
The other determinant is which platform you intend to run on; MSFS only runs on Windows, while X-Plane is developed on a Mac and is available for Mac and Windows, and I believe even Linux is in Austin's plans.
Though I enjoy playing flight sims--I have X-Plane, MSFS 2004 and Falcon 4 SP4 on my computer--I'm not one of the die-hards with home-built cockpits, etc. Lately, I mess around with Falcon 4 for fun, and X-Plane for IFR practice; MSFS doesn't get a whole lot of action from me.