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Tell him to sell the 360 and get a Wii. Then site off the bagillion games that are perfect.

Otherwise...

any LEGO game (especially Star Wars) was fun and usually cheap.. like $20.
...

That's all the 3rd party stuff I can think of. lol

I know my nephews have a few other games like Simpsons and Spongebob they liked and my kids like when they go over there but as a gamer I just can't bring myself to purchase those games. So my kids stick with LEGO, boy and his blob, mario (of every kind), donkey kong, bunch of VC stuff, ghostbusters...

Ah the Ghostbusters game might be fun... maybe too hard though.

360 is simply a bad choice for a 5 year old really.

Should be a DS or a Wii. Far better environment.