Hello jalo2, and welcome to AnandTech Forums.
Where can I get a new PS3 for $90? That's how much my GTX 460 cost. I would already have a computer for non-gaming tasks, so that's how much it costs me to turn my existing computer into a gaming rig.
... perhaps.
This is just so spot on.
Everyone already owns a PC. The price is then the cost to upgrade a PC from a work only machine to a gaming capable machine.
Generally speaking that means the cost of one video card.
A video card with superior performance to a console always costs less then a console does.
http://forums.anandtech.com/showthread.php?t=2080143
The 8800GTS 640MB came out 3 days before the PS3 for 2/3 the price. It massively outperforms it. You can play games with it today on 720p with a 30fps framecap (enable vsync and set refresh rate to 30hz) and they still look better. Not to mention how modern consoles tend to have lag, texture popping, hideous 3 minute level loading times, etc...
You don't HAVE to upgrade a PC, you have the option to and many choose to. But if you never upgrade, at any point in time buying a PC gives you a better quality machine.
The consoles of today ARE PCs only with a defective by design OS (DRMed up the wazoo and stripped of useful features), and games that cost 10$ more each for the console maker's cut. Throughout their entire run, they are more expensive then a video card upgrade to something more powerful then them. And PC games always let you lower the settings.
PC games also can output to a TV and allow you to choose whether to use a joystick, mouse+keyboard, or a game controller (I have an xbox controller for the PC for when I feel like it)
Mods provide extra value in the PC. Some developers claim piracy is an issue with PC but MS banned over 1/10th of its sold consoles from live for using pirated games and those are just the ones they actually caught.
Then there is the fact that crappy unfinished buggy games now appear in console format too... all 3 current gen consoles have internet updating capability and thus most new console games are "release broken, fix never, make a sequel" just like PC games, so that loses console's their one advantage (and it was a huge advantage; actual product QC is worth paying for and was a totally legitimate argument against PC gaming as late as the PS2 era).
I own a PS2, but I will not buy a PS3 or xbox unless there is some value add proposition here. With the FALSE promise of online updating resulting in no QC combined with the more expensive yet inferior graphics and control scheme, I see no value to buying those.