There are tons of great games coming out for 360 this year, I suggest you checked out my tracked games for a list of them. The ones that stand out are Bioshock and Mass Effect.
I give it an 8, playing alone at night with a surround sound hookup. Condemned for 360 is so much scarier though.
DX10 is in it's very early stages, don't expect it to be mandatory for at least a few more years (2-3).
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