I've been playing it on the 360 for a couple of days now, and I have to say I'm quite impressed. The fighting system feels very fluid, and while at first I thought it lacked in the combo department the truth is you can put together long strings of your own with a bit of experimentation. Makes it very satisfying to beat the crap out of people. I do think the battle damage gets a bit excessive on occasion and I have to wonder how after x-ray attacks like Kitana's (where she stabs her opponent in the back of their head and then through both eyes) they could actually carry on fighting, but they look cool and I guess it's just nitpicking
The story mode is a great addition, really enjoying that so far. Although I do wish there was a bit more variety and less one-on-two fights. Still, the VA's do a surprisingly good job and all the cutscenes are well animated so it feels really well fleshed out.
I had a look through the fatality trainer as well. Some of them are
disgusting. Noob's and Sheeva's rate particularly highly on the "bleurgh" scale.
Lastly, regarding the Krypt: Goddamn Jesus Christ. You'll know what I'm talking about when you see it.