But wouldn't it be cheaper to buy an X-Box 360 for £160? I am no X-Box fanboy, but it does run games well, and looks good doing it (Bioshock water effects FTW). What I am trying to say is, you could buy a gaming computer for £500 ($800) or you could buy a games console for £160 to £300, and it will look better on your HDTV.
Besides, every time you buy an X-Box 360 M$ actually loose money, they only make it back on the games, so, everyone could chip their X-Boxes, pirate their games and seem M$ crumble :D