Best $500 AUD "Gaming pc"

Solution
$500 AUD converts to $380 USD. It's really not enough money to build a gaming pc. It can be done for $650 AUD ($500 USD) not including OS. You may be able to put something together for less than this but performance isn't going to be worth it.

PCPartPicker part list / Price breakdown by merchant

CPU: Intel Core i3-6100 3.7GHz Dual-Core Processor ($159.00 @ CPL Online)
Motherboard: Asus H110M-A Micro ATX LGA1151 Motherboard ($95.00 @ Centre Com)
Memory: G.Skill NT Series 8GB (1 x 8GB) DDR4-2133 Memory ($44.00 @ Newegg Australia)
Storage: Western Digital Caviar Blue 1TB 3.5" 7200RPM Internal Hard Drive ($69.00 @ CPL Online)
Video Card: Asus...
$500 AUD converts to $380 USD. It's really not enough money to build a gaming pc. It can be done for $650 AUD ($500 USD) not including OS. You may be able to put something together for less than this but performance isn't going to be worth it.

PCPartPicker part list / Price breakdown by merchant

CPU: Intel Core i3-6100 3.7GHz Dual-Core Processor ($159.00 @ CPL Online)
Motherboard: Asus H110M-A Micro ATX LGA1151 Motherboard ($95.00 @ Centre Com)
Memory: G.Skill NT Series 8GB (1 x 8GB) DDR4-2133 Memory ($44.00 @ Newegg Australia)
Storage: Western Digital Caviar Blue 1TB 3.5" 7200RPM Internal Hard Drive ($69.00 @ CPL Online)
Video Card: Asus GeForce GTX 750 Ti 2GB Video Card ($179.00 @ Centre Com)
Case: Silverstone PS08B (Black) MicroATX Mid Tower Case ($39.00 @ Storm Computers)
Power Supply: Antec 500W ATX Power Supply ($61.00 @ CPL Online)
Total: $646.00
Prices include shipping, taxes, and discounts when available
Generated by PCPartPicker 2016-04-19 20:45 AEST+1000
 
Solution

vagrantprodigy

Distinguished
Jan 24, 2012
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If you have any parts you can salvage from old machines (cases, hard drives, monitor, key board, etc...) and you are willing to play games at low to medium quality, you may be able to build a AMD APU type machine. I did this with a AMD 7850K, with water cooling, which allows me to overclock the graphics significantly. I reused an old case, and old HD, RAM, etc, and came in around your budget. I never meant this to be a long term gaming machine though, just something to get me by until the next generation hardware comes out.