This game is a hidden gem for horror gamers.
Condemned is so scary, it actually makes me scream. I can't even play it on my own, and I nearly can't even play even with a friend in the room, we both got too scared and creeped out that we had to turn off the 360 for a while and regain our senses.
It's a FPS-Survival Horror game, it is more realistic-driven at the start, but later on gets a bit sci-fi/ghost-ish, which is all good too. Your weapon choices are things you pick up/find around the environment while playing the game, and can consist of things such as ... a metal pipe, a locker-door, a bit of wood with a rusted nail poking out, a fireaxe, etc. You do pick up the ocassional firearm, such as a pistol or a shotgun, but these are uncommon and have limited bullets, and are seen as 'bonuses' more than an actual weapon to use throughout the game.
The graphics are somewhat dated, but where Condemned truely shines is in the animation. The enemies behave so realistically, that it makes the hand-to-hand combat very enjoyable and surprising, because you never know when they're going to strike.
I highly recommend Condemned for anyone looking for a scary game.