Are links or content most important for a website?

Mat Cutts, Google technical spokesperson and software engineer answers the following question posed on Google Moderator:

As Google’s algorithm evolves, is it better to have exceptional content and mediocre links or mediocre content with widespread links?

The answer is explained by Matt in the video below, and summarised by his statement 'great content has to be the foundation of any great website'.

We are now on the top page of results for all our main search terms. The website news feed appears instantly; we don't have to do anything!'

Managing Director, corporate hospitality firm (London, UK)

I am very happy with the service... in the next few months I want to start using your [online news] service for another website

Partner, law firm (Florida, US)