I picked up Rockstar Games Table Tennis for the Xbox 360 over the weekend... $40 is the price because it's a more limited game than their normal releases. Still, it's amazing... great single player play vs. computer and online over Xbox live (I don't think it plays two player at the same screen.) Definitely worth checking out for a change of pace.
A gutsy design decision by Rockstar if you ask me -- going very much in the opposite direction of expansive, kitchen-sink, big-license EA sports games, this is a finely tuned little gem that's a joy to play. I've had more fun playing this for an evening than any recent game in memory.
(Correction: It does support 2 players on one TV locally -- just turn on the second controller and see the option. It also supports up to 8 players in Live via a tourney mode.)