Well, I'm not going to say that whoever said that back in the day was lying, but maybe he got carried away while discussing the new machine and its specs.
Right now you could build a PC as powerful if not more than the XOne for $500, but not without some troubles because, with no intention to disrespect the machine, it's so outdated that it's hard to find components of that level outside the second hand market.
I remember whoever said they could get one mentioned using a lot of used components. I just figured there was an off the shelf PC that could do it, now. Doesn't have to run perfectly. Even 360 level, maybe. I just want to get my feet wet.