Oblivion, definitely, although I am loath to agree with spike tv. That aside, it really is one of the best video games ever made and, without question, the best of the year. There just aren't many experiences out there that even come close to what this game can do.
Edit: Just some quick comments- NCAA 2007 was a really good game. Maybe the best sports game of the year, if not NHL 2007. I love Marvel: Ultimate Alliance, but it's not exactly GOTY material, but to each his own I suppose. GoW shouldn't be game of the year simply because it has severe graphical problems on standard ratio LCDs over VGA cables that they are aware of, HAVE a fix for, and for some reason are not putting live. Also the extremely large number of MP issues. And KH, as a concept, much less as a game, completely blows. It is one of the worst, if not the worst, game to ever have Square's name on it. Ok, I suppose X-Squad is worse, but not by much. I just don't understand how any FF fan can not be made ill by the mere existance of those games. And Sora is very likely the biggest tool in the history of gaming. And I don't want the death of J-RPGs, I just want them to be good again. Enchanted Arms wasn't bad, but come on, it's got to get better than that. Maybe Lost Oddessey will live up to the hype.