At this moment you cannot build a PC for $400 that will be as powerful as PS4. But that's not the point, because PS4 is not a PC. A PC can do infinitely more than just play games/media.

Here is my comparison. Granted this is actually a bit more powerful in every component. So for an extra $256, you get FAR more usefulness as well as notably more powerful hardware.

CPU - AMD 8-core vishera $160

MOBO - ASUS AM3+ $78

GPU - Sapphire HD7850 2GB GDDR5 $180

MEM - G.SKILL 8GB Ripjaws $70

PSU - ANTEC 650W $70

DVD - ASUS DVD burner $17 (unsure if I even need this, let alone a BR drive)

HDD - WD 500GB 7800RPM SATA 6Gb/s $60

Case - Gigabyte steel case $21

TOTAL $656

Now, I'd keep some of those items, but switch to an Intel setup myself. This should run cooler with better performance.

CPU - Intel i5 Ivy Bridge $200

MOBO - ASUS LGA1155 $85

TOTAL $704

EDIT: I didn't take a lot of time to verify 100% compatibility with ram etc... just sayin'.

If I build a desktop box using parts available today for $400 without recycling anything (M/KB, OS, case, PSU, HDD, etc.) I would be left with an extremely modest set up that would not give me the same experience as either console.

At $500, I would be left with a decent budget gaming PC, but in all fairness to the XB1, that price wouldn't include the rather impressive yet somewhat pricey Kinect 2.0. $100 for a sensor/camera array is actually quite reasonable, so pricey probably isn't the best word, but when a PC builder considers the difference in parts options available for the same price, that extra $100 buys a significantly better VGA card.

For a budget PC box, I don't see why one would want to use a Kinect 2.0 camera, even if it didn't cost $100 (which it won't if MS sells them as a separate SKU; they will cost more) and even if one could even buy a Kinect 2.0 to use with their Win 8 PC at any price.

A PC builder would also take the money that would go into a BD drive, swap it with a $20 DVD drive and use the difference towards a better CPU or VGA card. You won't be watching BD movies on said PC, but... not many PC users do compared to PS3 users.

I don't really like these comparisons because I already build my own PCs with gaming as a secondary function. I prefer to play on consoles or *gasp* for a quick game, on tablet or phone. Secondly, I have absolutely zero interest in building a basement budget $400 gaming PC as my idea of a decent gaming rig would start closer to $1000 at which point you're comparing apples and oranges with regards to $400 consoles.

it's not like people buy pc's from zero to play games. EVERYONE have pcs so it's only a matter of buying a good gpu and maybe RAM.

Here's a better one I think. $592 Still more powerful than both consoles but closer in price.

CPU: Intel i5 ivy bridge $180
MOBO: MSI Z77A LGA1155 $104 (includes free 8GB RAM)
RAM: Crucial 8GB DDR3 1600 $0
GPU: Sapphire HD7850 1GB GDDR5 $140
PSU - ANTEC 650W $70
DVD - ASUS DVD burner $17 (unsure if I even need this, let alone a BR drive)
HDD - WD 500GB 7800RPM SATA 6Gb/s $60
Case - Gigabyte steel case $21

My £500 gaming PC is only just edging out current gen.

Mouse/keyboard/speakers. optional (controller)

Also you have to factor in the cost of windows. (If you are doing everything by the book)

Well the PS4 will be more value for money out the box when compared with the PC.

Also the PS4 will get Sony games. (PC will not) One of the big drawbacks.  Also most of your "Casual" friends will be playing on consoles and not PC.

You see, everyone has those laying around... but in reality kb/ms is like $10-$15.

If you're going to included a monitor and speakers, then you better add a TV to your console price.

Windows is on my current PC or I can use Linux which is free. So no real cost here.

My prices are still pretty much perfect.

I here ya superchunk.

PC trumps consoles in DL content. Free online play, better rts/fps controls.

PC also had the game of E3 exclusively. Rome II: Total War.

Yeah then you should have gotten your fact straight, the PC you just build is nowhere near as powerful as the PS4

This config will never run games better than PS4 and you forget OS, Mouse, keyboard, etc.

The others config you posted too... not "powerful" enough to reach PS4.