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Yup considering that games are being designed to run on hardware that is 7+ years old (and already outdated at the time) you don't need much to run today's games.
If you can run a game higher than 1280x720 (or in some cases lower) with the lowest settings, getting more than 20-30 FPS, you are already way ahead of XBOX 360 and PS3 in terms of quality.
Here's a quick setup that will play any game at 720p with medium to high settings (some will run at 1080p easily), and costs less than a PS3 or XBOX 360
CPU: AMD A6-5400K 3.6GHz Dual-Core Processor ($69.98 @ Outlet PC)
Motherboard: MSI FM2-A55M-E33 Micro ATX FM2 Motherboard ($49.99 @ Amazon)
Memory: Crucial Ballistix 4GB (2 x 2GB) DDR3-1600 Memory ($16.99 @ Newegg)
Storage: Western Digital Caviar Green 750GB 3.5" 5400RPM Internal Hard Drive ($54.99 @ Newegg)
Case: Apex DM-318 HTPC Case w/275W Power Supply ($44.93 @ Amazon)
Total: $236.88
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