I have been thinking about old games that would be great Xbox Live Arcade titles, or would work well on the Xbox 360 if their graphics were updated, and I guess I was not the only one as Siliconera has an article about just that.
They list five games that tehy think would work well:
Bonk / PC Genjin
Snatcher / Policenauts
I’d really love to see Battletoads on there.
Making a new Battletoads game is really a no brainier because Microsoft now owns Rare. If they want to test the market they could release the previous games over the Xbox 360 arcade and see how people respond to them.