First they show off the game as a tech demo for windows and multi-cores, then they brag about how the game will take advantage of DirectX10 hardware for all kinds of effects.
And then, some months before the game is released, they announce it as a X360 exclusive game.
Well, this further proves how much of a mess is going on at Microsoft's management.
I read in an interview that Microsoft's management is a crap hole right now. All the executives are fighting like dogs for higher influence for their own department and no one thinks of the company as a whole anymore.
The guys over at the X360 department probably have more influence than the ones at the Windows Games department, and convinced the big bosses that Microsoft would make more money if the game is a X360 exclusive.
Honestly, this is just another game that's been delayed into a state of "no-one-gives-a-s**t-anymore".
Everything technically "new" that they showed in the 2006 demo (atmospheric changes, havoc physics, etc) has been used in many games already.
Now it's just another survival horror in a console, bleh. It won't be any better than Resident Evil 5 or Silent Hill: Homecoming.