The game thrives off its atmosphere and slow-mo gimmick...but not much more.
Where the horror comes in, it comes in thick though. The final chapter is hellish, and throughout the game you'll be dreading the return of the evil little girl and the nightmarish scenarios that her presence signifies. A good story isn't enough to warrant the pricetag though - neither is the short length, despite the inclusion of an extra chapter.
If you find the PC game cheap go for it, but other than the visuals which still stand up (especially with revised lighting and fixed glitches), the xbox version offers nothing you can't find somewhere else.