I know. It pains me to admit it! But I have come to the realization that I must either convert to consoles, or quit. I choose consoles. I hope that you never wind up in my shoes!
You might want to factor in the cost of the games themselves as well. It won't really matter if you usually buy brand-new games, but if you can wait you can get PC games at huge discounts.
If you're on a $500 budget, I'm sure you can pick up a system that's a couple years old off Craigslist or some place, it's not going to be 4K but should be good enough for casual gaming. Or at the very least buy a used CPU, graphics card and RAM, those typically don't degrade much with age. $500 is going to be a pretty pathetic gaming system if new IMO Comparing a console vs desktop isn't really so simple since it's a keyboard vs controller question. Keyboard and mouse are always going to be superior, but it's also a matter of what you're used to.
1) Well that Alienware in question is at least the equal to a PS4 and it can double as a PC all for 479 USD. It comes with a controller and 6 free games. The CPU in the Alienware, while nothing spectacular, is more than sufficient to run console emulators. There's youtube video of the base Alienware running Dolphin and PCSX2 flawlessly. 2) A PS4 is 399.99 USD + 49.99 USD (or else I can't play online). This comes out to 450 USD. It comes with one game and one controller. Both of these systems are within my budget. 3) Breaking my budget and cutting corners, I can get this : http://www.cyberpowerpc.com/saved/1GYFH6 Pentium g3258 3.2ghz (which is stupendous for emulation and easily overclockable), a Radeon r9 270 2gb video card, 8gbs of RAM, 1TB 7200 RPM HD, 1 wireless game controller, 1 wireless keyboard w/touch pad, a mouse, and a 450 WATT Bronze level PSU. But it's over my budget (574 USD) and it comes with NO games or OS (but I have a full LEGAL version of Windows 7 Home Premium). Those are my only three options. The only reason I'm willing to consider option 3 is that I like the way the case looks.
Build (or have it built) a desktop around the AMD A10-7850k and buy a dedicated graphics card later when you have the money. This option will give you flexibility and eventually a much better machine than those fancy looking little boxes. One thing alone should decide you in favour of a proper desktop: cooling. None of those tiny PCs will let you run the the hardware at close to full power because it will get too hot and will throttle; it will also be (very) noisy. Overclock is also limited or not an option. As to games, just look for the (many) promotions around and eventually you'll save more money than with the free games they offer with those boxes.
Well I've just given up on the idea of using a PC or PC/console hybrid for games. Like many users said, anything in my price range is crippled or will be crippled in a few months when newer games come out and the system can't keep up with the specifications. I went on Ebay and looked around and I got me some good deals on a last gen console. I picked up an Xbox 360 S with 250gb HDD and wireless N built in for 99 USD. I picked up the Kinetic camera/motion sensor for 19 USD. I picked up two games : Marvel Super Heroes Battle for Earth (for my nephews when they come over) for 8 USD and Dishonored for 4.50 USD. I purchases 30 dollars worth of XBLA games (came out to 4 games). And I'm eyeing another official Xbox 360 controller on EBAY for 19 USD. I don't think there's a $99 computer around that can play GTA V or Dishonored. PCs for gaming are a ridiculous waste of money. I'm well under my budget and I actually have money left over for a PS4 if I find a good Black Friday deal in a few months.
As has been stated before. Its all in what you want to do or get from the experience. There is no question that a high end gaming rig offers the best gaming experience, both from the visual and control aspect. If you are more of a casual gamer or if having the best video and control is not so important, a console, even an older console would be a good choice. I think that you have made a good decision and hope that you find a great deal on a PS4 down the road. Full blown gaming rigs are not cheap, but well worth it to many people. On another note some games may actually play better from a console controller. I know Philistine...
Sadly, it's pretty tough to buy a pre-built PC worthy of the category "Gaming Machine" for $500. Can you put-off your purchase until you can save some additional funds? Have you considered buying a used rig via Craig's list or something like that? Gamer's frequently upgrade not only components but entire machines. Their old machines just gather dust.
$500 won't get you much even if you build on your own. I'd save up a bit more and try to get arounf $900-$1,000 and then just build your own. Nowadays building your own PC is easy!
For example in my area a quick search on Craig's List turned up these https://washingtondc.craigslist.org/nva/sys/4991988023.html https://washingtondc.craigslist.org/nva/sys/4987480730.html
