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Buying a comparable 7800GTX and pairing it with lower clock speed dual core CPU (under 3.2ghz) would not provide the same gaming performance as a $199 console in the 360 (even without HDD, it still plays all the games the same), or a $299 console in the PS3 at those prices.

There's no way to spin that.

Console games are hardware optimized over time, even as the price continues to drop. Result; you see more being done with the same hardware as the generation goes deeper.

Nobody in the PC world optimizes for lower spec VGA cards and builds by contrast. Making it run on low spec systems, period is the only priority, regardless of resolution, frame rate, effects and all the other reasons we build decent (not minimum spec) dedicated gaming PCs that cost considerably more than any console.

In the case of the gaming PC, you get what you pay for. And it always pays to have higher spec hardware in the case of the PC if you're playing current games.