One of the best games ever, hands (or lightsabers) down.
Put simply, KOTOR 2 is a legendary and life-changing title, especially for Star Wars fans. The story is better than you expect, and its epic on every level.
If you're more accustomed to style of previously released Star Wars games that were more hack n slash, or Bang Bang Shoot 'em Up style, chances are you will be unable to enjoy this game. While the actions sequences do get pretty intense, it's not what some Star Wars fans would hope for. You do get to slice and dice with a lightsaber, but not like Star Wars: Unleashed or something like that. It's definitely an RPG game, and it's a whole new breed.
Again, we come to a point where PC gamers will tell you that PC video games are better. That's really not the case. The graphics are perfectly fine. There are some very minor hiccups, like seeing your weapon go through your own body, but they are negligible.
It's like a trilogy inside a game. You start from scratch and become one hell of a powerful Jedi (or Sith). You are given a nice plethora of companion choices to assist you. As a bit of advice, I would recommend keeping Kreia in your party permanently. Only switch out the third team member. Kreia offers priceless and valuable help during battles, as well as advice. Kreia's part in the story is the totality of the game, so make her your right-hand man so to speak. For every level you reach as a Jedi, Kreia is only a step behind you in power. In the end game, Kreia will be kick ass and taking names.
This game is what YOU make it. I recommend doing absolutely everything you possibly can before moving on at any point in the game's story. Now that the game is been out for a while, I can tell you that the game has no sequels. Even the new MMO based on this series really is not connected to this game...rather, it is an extension. KOTOR 2 is pretty much a one-shot at this point, and the story is wrapped up the most it every will be at the end. If you want a fully satisfying end, complete the game in its entirety. For the record, it is much more satisfying to take the Jedi path and not the Sith path. Personally, I beat the game once for each side. Trust me, there is loads to discover and more secrets than you think in this game. It takes a Jedi Master to master KOTOR 2, and it's worth it