atomicWAR :
That said your never gonna build a PC "on the cheap" that can keep up with one of those consoles for less money then you can purchase them for.
Don't know about that...
Gigabyte EP35-DS3L - $85
Intel E5200 - $90
2GB PQI RAM - $32
Palit HD 3870 512MB - $110 (-$20 in MIRs)
WD Caviar 500GB - $70
Lite-on DVD burner - $24
Antec Sonata III Case w/500W Antec Earthwatts PSU - $130 (-$50 MIRs)
Total after MIRs = approx. $470
Prices above according to Newegg.com.
Beats any console out there, yet still costs less than an 80GB PS3, and it only took me 10 minutes to put together and I wasn't even looking for the best deals out there.
I could have easily gone with cheaper components, like an E2180 CPU (overclocked of course) coupled with an 8800GS/9600GSO, HD 3850 (can be found now for as low as $75) or even an HD 4670 (which seems to be a better performer than a 3850 in many cases from what I've seen), and it would still easily outperform any console out there (i.e run the same games much better at the same settings or higher).
I don't know why people still say PC gaming is expensive when it obviously isn't. You don't have to have the latest, most expensive cutting edge hardware to have a good gaming PC.
I would like to add that prices differ from one region to another. Where I live, current gen consoles cost almost as much as a very good gaming PC ($800+), not to mention console games cost $100+, when the same games on PC cost much less.