I have an internship opportunity in Glendale, California working on games for a Viacom company, but it is unpaid and they do not pay for housing. I am currently on the other side of the country, and have a paid internship from last summer working on Android applications for a defense contractor. I can do the unpaid internship with the fairly well known Viacom company using a $4000 dollar stipend from my university, or stay in my lesser state writing Android apps for pay. The Android work is actually very interesting, but doesn't have the allure of working for a well known company in California across the country.
Will the unpaid internship be worth the experience?
What kind of work do you want to finally end up doing? How much responsibility will you be given at each? Will you make better connections at one or the other? Which work environment do you like more? Are you passionate on interested in the work they are doing? Which one will provide you with a better learning experience?
There are so many personal factors that weigh into a decision like this, and money may or may not be a large factor for you. But thats up to you to decide. Ultimately i think it comes down to where you'll be happier, and which will help you the most down the road. Answer those to questions and i think you will probably come to your answer.