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Best gaming PC for $400?

My friend has asked me to put a gaming PC together for him, and he's already chosen a mid-tower ATX case that will cost him $50. He wants to spend around $350 for the rest of the components, but is willing to go slightly over if there is a good value to be found. Ideally, he'd like play this year's games on Medium to High settings.

So, to clarify, can someone recommend what they think would be the most optimal gaming setup including: the motherboard, CPU, video card, RAM, HDD, and power supply for around $350? Any help is appreciated.
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More about gaming 400
  1. high and medium with 350? you can get a fm2+ with 200 usd more 70us memory 45 HDD and the rest for the powersupply. but you cannot run HIGH on fullHD maybe 1600x900
  2. Oops! Forgot to clarify, newest games wouldn't need to run in Full HD on High. Medium settings at a lower resolution or 720p is fine.
  3. Best answer
    Here's what I would go with:

    PCPartPicker part list / Price breakdown by merchant / Benchmarks

    CPU: AMD FX-4300 3.8GHz Quad-Core Processor ($89.99 @ Amazon)
    Motherboard: Gigabyte GA-970A-D3P ATX AM3+/AM3 Motherboard ($89.99 @ Newegg)
    Memory: Avexir Core Series 8GB (2 x 4GB) DDR3-1600 Memory ($62.99 @ Newegg)
    Storage: Western Digital Caviar Blue 1TB 3.5" 7200RPM Internal Hard Drive ($59.98 @ OutletPC)
    Video Card: Sapphire Radeon HD 7770 GHz Edition 1GB Video Card ($84.99 @ Newegg)
    Power Supply: Corsair Builder 430W 80+ Bronze Certified ATX Power Supply ($23.98 @ Newegg)
    Total: $411.92
    (Prices include shipping, taxes, and discounts when available.)
    (Generated by PCPartPicker 2013-12-26 21:41 EST-0500)

    It's a bit over but at least he can have an upgrade path instead of having to start all over again in the future.
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