I've heard good things about Eternal Sonata and Tales of Vesperia. Obviously Oblivion is great, Mass Effect, and though I haven't played it yet, Fable 2. Out of those I've only played Oblivion and ME, but you can't really go wrong with any of those titles imo.
Vesperia is decent, while the plot isn't spectacular, it has decent characters and good sense of scale and adventure, but you need a guide for sidequests.
Mass effect, Dragon age were good as well, there's also Lost Odyssey, Blue dragon (don't expect anything out of the characters and story in this).
Can't recommend Eternal Sonata, while I liked the music and the concept, the entire game, scenarios and gameplay were disappointing.
I have a soft spot for Mass Effect and its recent sequel, but they are RPG-lite in a way. If you want a traditional JRPG, Lost Odyssey is a good choice. Eternal Sonata was kind of disappointing (I didn't even bother finishing it). But, then, I'm not a huge JRPG fan, and that one was a bit odd. Dragon Age: Origins remains the best on the platform, I think. If you want cheap, though, Lost Odyssey is probably your best bet. I think I just saw a used copy at GameSpot for $15. Considering how damned long the game is, that's about the best value you'll get anywhere per hour of gameplay. Dragon Age is long as well, but used prices are still a bit high, since the game's not that old.
ill tell you what not to get. BLUE DRAGON that game is garbage. Best RPG, Mass Effect and Fable is okie but it gets pretty easy later in the game and Boarderland is a great game especially for co-op.
Stay away from Eternal Sonata, did not enjoy myself with that game and I've debated it's quality numerous times. Plus, there's ton's of different games that are on the 360 that easily overshadow it.
Lost Odyssey- Phenomenal game from Sakaguchi, the entire game is essentially the Final Fantasy game we never got. Shame a sequel hasn't materialized. Tales of Vesperia- A great long JRPG with a fantastic battle system, and surprisingly interesting characters. Final Fantasy XIII- Yup. Resonance of Fate- I'm currently playing this right now, and while the battle system is ridiculously complex the game has been solid so far. Mass Effect ( 1 and 2)- Got both Paragon and a Renegade character. Freaking fantastic. Fallout 3- Played this to death. Oblivion- Ditto. Dragon Age: Origins- Haven't played it on the consoles, but I've heard it's not that bad. Fable 2- Not exactly the most traditional RPG on the console, but it's great.
If you don't mind very traditional JRPGs; then I can't recommend Blue Dragon enough. By and far my favorite RPG on the 360 that I've played. The story line won't blow you away or anything; but there are a lot of things to see and do if you like collecting things and exploring. I think you can get it for 20$ or so new at certain places as well; making it a must have in my opinion.
If you're into Diablo-style action RPGs, Sacred 2 is also good. It's a very, VERY, uh... Diablo-ish game. It's basically Diablo with literally hundreds of quests to do and an ENORMOUS map. It doesn't do anything spectacularly better, but it does what it does well and there's a lot of it.
I think all the best ones have been covered. I am not sure if Star Ocean or Magna Carta II have been mentioned but they are both kind of middling compared to the others listed.
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