An absolutely fantastic gift idea for an Xbox 360 fan is to get them a MS Point card. MS Points are the currrency you use on Xbox Live to buy Xbox Live Arcade games, downloadable content for games, rent movies, and much more. MS Points come in 1600 ($20) and 4000 ($50) denominations at retailers. Pretty much every Xbox 360 gamer needs more points, so MS Point cards are always a great idea.
Xbox Live is the heart and soul of the Xbox 360. It lets you play games with friends, chat with friends even if you aren't playing the same game, download game demos and even full games, and much more. There are two versions, one free which has fewer features (and you can't actually play games online) and one premium service that requires a subscription fee. Technically, the price of one year of Xbox Live Gold went up as of November 1st, 2010 to $60, but with a little shopping you can find it for quite a bit less than that - more like $40-50. Even if someone already has an Xbox Live subscription, new subs can stack on top of that, so they'll be set for years to come. Always a great gift idea.
Halo Legends is a series of seven animated short films created to tell new stories from the Halo universe. They were created by the top anime studios and directors in Japan, and are all of very high quality. For Halo fans, Halo Legends is a must-own. It is available on both DVD and Blu Ray.
Red vs. Blue is a comedy series created using the Halo series of videogames. The Blood Gulch Chronicles box set packages the first 5 seasons - seasons that used Halo 1 and Halo 2 - into one inexpensive set. This series is very well done, absolutely hilarious, and something any gamer will enjoy. There is some harsh language, so it isn't recommended for younger gamers.
The Recollection box set features season 6, 7, and 8 of Red vs. Blue and has episodes using Halo 3. It isn't quite as good as the Blood Gulch Chronicles, but well worth owning for fans of the series.
Gaming Action Figures $10-30
Another great gift idea is videogame-related action figures. There are figures for just about any game you can think of including Halo, Gears of War, BioShock, Assassin's Creed, Bayonetta, Metal Gear Solid, Metroid, Super Mario, Street Fighter, and many, many more. It must be noted that you'll only really be able to find Halo figures in normal retailers, and will have to use a specialty shop for any others. My personal recommendation is BigBadToyStore.com (they also sell through the Amazon Marketplace if you'd rather buy through there to feel more secure). They have a great selection, and mostly decent prices, though shipping can be expensive. See their full selection of videogame items here.
Microsoft has recently introduced a new Xbox 360 controller with a unique directional pad that you can twist in order to raise up cross pad so it is easier and more precise to use. The new controllers come with a rechargeable battery pack and Play & Charge cable for an MSRP of $65, but you can get it for closer to $50 with a little shopping around. The controller itself is very good and worth picking for the gamer in your life. We always need more controllers.
The Xbox 360 Chatpad is a little keyboard that attaches to the bottom of an Xbox 360 controller. Why would you need it, when you can voice chat on Xbox Live? Because you actually have to enter a surprising amount of text when you use the Xbox 360 - sending messages to friends, inputting redeem codes (such as the 12-Month Xbox Live Gold sub or MS Point cards mentioned in this article) - and it is much easier and faster to use a little keyboard like this than the on-screen keyboard. I've been using it for months now myself, and wouldn't ever go back to the bad old days. It seems like a silly gift, but you can get a surprising amount of use out of it.
Everyone needs batteries, and rechargeable batteries are a great way to save money and time and effort. They are more expensive to start with, but are great money savers in the long run. The most recommended brand among gamers is Sanyo's Eneloop brand. They are relatively inexpensive and last longer and hold their charge better than most other rechargeables. You can get a kit with a charger and set of AA and/or AAA batteries for anywhere between $15-30. You can buy rechargeable battery packs specifically made for the Xbox 360, but they are inconsistent in quality and expensive compared to normal recharageable AA's, so we recommend going with the Eneloops.