That's a really tough one to answer, since it depends on what kind of games you like. I have a PS3 right now and was planning on the PS4 in the winter, but I think I'll wait it out on the new consoles since I hardly ever touch mine anymore.
I just actually put together a PC today, and finished building it this evening (save for one annoying bit), I did a Core i3 3220 with an Asus Radeon 7870. Then all the usual suspects such as a case, mother board, 8gb of ram, a cheap 500gb 7200rpm hdd and a 500 watt psu (which when I got home didn't have a second pcie power cable so now I have to go back to the store when it opens to get a 2x molex 4 pin to 1x pcie 6 pin adapter, things to check when you are buying!), and of course a copy of Windows 7 (not really a fan of win8).
I'm expecting the performance out of this to be pretty good, but not mind blowing. My setup cost me 850 dollars with taxes (I live in British Columbia, Canada).
By the time you are ready to buy your parts, (and if this is going to be an ongoing project, watch out for things to go on sale and buy them up!) I'd suggest going the PC route. What I missed about PC gaming was the versatility and the prices of games. You aren't stuck with a box that can't be upgraded and you have more control over what you do with your machine, I figure what you'll save in software you'll spend on hardware so it really levels out in the end, unless of course you keep your PC for a long time and just keep saving on games that go on sale.
What's keeping me going on this, is that I have some games already that I love to play (purchased on steam), and I had picked up 2 games that I couldn't really play on my previous machine (the new Sim City and Diablo 3), so now I'm finally going to enjoy those two titles.
Blizzard and Steam both sync your activation keys to your accounts, so you can just go online and download products you've already purchased, it'd pretty awesome and I love not having to dig around for my discs whenever I switch computers.
Dylan1999 :
I want to build a gaming computer, but then I though about the ps4 that is coming out at Christmas. And I wanted to know which would be better. I'd say my setup is really up there, but it's $1200, without games. Where as the ps4 is $400 with tons of money leftover for games. By December I would have $800 or so. So I wanted to know which is better performance. Which ever one you say is better please explain why. Thanks in advance!