I would opt for the GTX 760 ($250) in a low end system like this. According to Tom's Hardware "this is the upper end of the spectrum for gaming on a 1920x1080 display, and it's more accessible than ever"
Frame rates consoles vs PC is hard to compare because consoles have draw distance and other settings dialed back to maximize frame rates for the hardware. Where as in the PC realm there are so many cards in use that this requires tweaking your settings.
I would also never get an i3 chip. Just not enough power for me... since I do more than game. I would opt for and i5-4570 at $190 (mking the op spec $60 more expensive) though I would want the i7-4770k for any real work.
Of course if you wanted WiiU level graphics (which are very respectable) I might opt for a really cheap box with an AMD A10-6800K at $150 that was both cpu and gpu and makes the op system very expensive looking ($230 cheaper with this option). The drivers for steambox/linux are respectable too.
The i7-4770R is a decent all in one chip solution ($392) that will give a decent gaming experience but is more expensive than the AMD one, but still cheaper than a decent cpu and discrete card.
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