I would advise against buying any pre-packaged, proprietary Linux PC like that. It's got a 4th Gen i3 with 4GB DDR3 RAM and last year's second tier graphics card. It'll be good for a little while, but PC gaming is already into 2160p and up whereas consoles are still stuck at 1080/900p. There's a new racing game coming out that's 12k resolution. You'll need moar powar to get the full effect of these games. I don't think you will be able to upgrade that like you would a regular PC, either.
I bought a better laptop for $379 last year. It has 6GB RAM and 750GB hard drive space. Run Steam in big picture mode, spend $20 on MS controller, plug the HDMI into my TV and I'm golden. I'd definitely return it if I were you.
Yeah but the form factor for me is a HUGE deal. This thing is the size of a Wii and fits nicely on my entertainment center. For $400, the ability to play most games (and it'll be that way for awhile, everything is upgradable except the GPU), run a plex server, be an emulator box, etc. at that cheap, I'm fine with that.
I could build one, but I don't particularly care to. You'd be hard pressed to for $400 with the same quality parts, an OS, and a 360 controller. And I especially don't want a huge tower in my living room, I'm not going to build a huge battle station either.
It's plugged up to my 1080p TV which I play on, so the 2160p doesn't apply to me anyway. I'll take it for the exclusives I wanna play or the semi annual steam sales on stuff I want.
I'm in no way a PC elitist and play consoles more, mostly due to that's where my friends play too.