That's a pretty small budget for a gaming rig, but it can work.
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Yeah, it's not meant to be top of the range but just a decent PC that'll run some regular games. Nothing like Crysis or BF4 on ultra though lol.
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At that point, you could settle for one of the new consoles.
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I did :D My little brother wants to get a gaming pc though, despite my encouragement and advice to go for a console of the same budget. He's not so much interested in the power/quality of the games and more just playing MMOs and crap like that with his mates.