Not by a long shot.
A $500 PC today can run Crysis at very high settings at 720p+ resolutions. Sure games like Unchartred 2 and God of War 3 look excellent, but it's because they are linear games where the developer can control exactly what the user sees. Games like ArmA 2 and Crysis don't have that luxary (even GTA 4 and RDR). You have to scale all of your graphics to run smoothly from any angle and any amount of action, which is very difficult to do.
So when you think about it, the PC is still the best bang for your buck for video gaming. A $500 PC can run all of the games today (except newest titles) at decent FPS (nothing unplayable). Sure it probably isn't a real futureproof machine, but you're still getting the largest library of games (and cheapest) for only $500. With that you're also getting the best graphics any of the platforms can produce. All of that is just talking about gaming.
What many users on this forum don't seem to realize is how much a very powerful PC and a decent sized monitor can completely make your computing experiance more enjoyable for every application. My 1680x1050 monitor at 20" is just the beginning to what you could have. Add in a powerful processor so everything loads ultra smooth, a decent amount of ram for multitasking, some nice 2.1 speakers or headphones for audio, a comfortable mouse and slick keyboard, you're computing experiance will not be the same. All of this comes with a PC. Sure a laptop can get the job done, or you spyware ridden family PC, but nothing is quite like having your own personal PC that is fast to just do work.
Best bang for your buck always will go to the PC. Best graphical bang for your buck, best total bang for your buck. You can't go wrong with PC gaming unless you buy a Mac.
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