Absolutely gorgeous. One of the morst beautiful looking games ever made. Ninja Theory made the wait worth it.
Graphics - Stunning. Beautiful colors and life like characters help bring the story to life. I did notice a bit of slow down here and there when there are hundreds of enemies but that is to be expected and nothing bad enough that it hurts game play. Nariko is designed as one beautiful and strong looking heroine, and the rest of the cast is extremely well designed and rendered.
Sound - Great sound effects and excellent voice acting. Music is crisp and fits the mood. Only problems I have seen is lip syncing gets a bit 'britney at the VMAs" at times during cut scenes, but over all it's great.
Game play - Very God of War-esque but with it's own signature on the genre. It focuses more on actual sword fighting and not so much in magical powers as is the case with GoW and it's God powers. The controls work very well, and the ability to control projectiles in flight is both innovative and fun; especially since it works great.
Overall - Heavenly Sword is one of the best games out there for any system. It is one of the first games to give you a taste of what the PS3 can do. It's only short coming is that like God of War, game that it will be constantly compared to, it is a bit short; but the time you do spend playing it, will be some of the best gaming you do all year.