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disolitude said:

Xbox Live Arcade is where its at.

100 bucks spent on XBL will give you 100's of fun hours of gameplay. Especially if you are jsut buying the system now for the first time...you got lots of great titles to catch up on. Braid, Castle Crashers, Geometry Wars 2, Splosion Man, Shadow Complex, Super Meat Boy, Limbo...list can go on and on

That is a big one.  Indie Games also has some gems to (Mommy's Best Games stuff which are like old Amiga games, and Miner: Dig Deep are two).  Pinball FX2 is great for pinball.  I am a rare exception, but I like Game Room. 

Best thing someone can do is check the list of what is out, and then decide.  Even one game alone can be worth it, if that game is looking to get a lot of play.