All gaming consoles are available for $300 or less. Including the Xbox 360, PS3, Wii, PS Vita, as well as all DSi and 3DS systems. But a $300 computer would not have nearly as much power, and would be hard to find. It would probably take at least an $800 computer. Why is this?
Microsoft, Sony, Nintendo, et. al. will freely admit that they lose money on the sale of each system. Sometimes to the tune of several hundred dollars per unit. However, they will gladly lose that little bit of money because they will recover it, and much, much more, in the sale of games and the licensing rights that the game manufacturers pay for the right to publish a game on that particular platform.
So when you combine the fact that the hardware in a gaming system will be a generation or two behind the fastest hardware in a state-of-the art desktop (both in CPU, GPU, memory, etc) with the fact that the manufacturer is willing to lose a little money to saturate the market with as many consoles as they can (the more consoles, the more they can charge for licensing), it's easy to see why consoles are so much cheaper! They're subsidized by a manufacturer, while a high-end gaming PC is not.
Hope that answers your question.
500 MHz graphics - I think the integrated graphics are better
512 MB RAM - you can get 4 GB (4096 MB) of RAM for under $20
Can't say much about the motherboard, but you can get some cheap motherboards.
PSU - there are some cheap ones too (because it doesn't use much power)
Case - get some Chinese case, it's $20.
Probably beats Xbox 360.
and i won't lie you can get allot of money from computers....
streaming you need a computer to stream! even if you want to stream a Xbox game you need to edit the video powerful computers are required to do this
Games on computers are much higher in quality not game play but the way the textures look are allot better then from a Xbox. and today indigames are where people are and indigames are more popular on the computer :3 you get the idea.
xbox 360 has a processor around 1.0 Ghz and most computers have over 2.0Ghz
Computers GPU are not specifically for gaming, its for videos as well
1) PC's support much better video, with antialiasing and such at whatever res possible. Consoles top out at 1080p
2) PC's support much better sound, with possible expansion, such as 7.1, SRS, Dolby processor, and so on.
3) PC's support mods for the games
4) Trying running MS Office on a console. :D