System Software Application Software
The system software helps in operating the computer hardware, and provides a platform for running the application software. Application software helps the user in performing single or multiple related computing tasks.
System software executes in a self-created environment. Application software executes in the environment created by the system software.
It executes continuously as long as the computer system is running. It executes as and when the user requires.
The programming of system software is complex, requiring the knowledge of the working of the underlying hardware. The programming of an application software is relatively easier, and requires only the knowledge of the underlying system software.

There are much fewer system software as compared to application software. There are many more application software as compared to system software.
System software runs in the background and the users typically do not interact with it. The application software run in the foreground, and the users interact with it frequently for all their computing needs.
System software can function independent of the application software. The application software depends on the system software and cannot run without it.
Examples: Windows OS, BIOS, device firmware, Mac OS X, Linux etc. Windows Media Player, Adobe Photoshop, World of Warcraft (game), iTunes, MySQL etc.

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