My upgrade last year costed me I think 630€. That was a Q6600, 8800GT, new Mobo, 4 Gb memory, new PSU, Arctic CPU Cooler. Later I bought a 500 gb HDD for cheap 50€, and my X-Fi serves me since 2007 (50€ as well I think).
What's that crap with $1500 PC's anyway? Buying in Uganda? Besides, console games are usually 20€ more expensive. You safe money there too.