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If you build a PC with the exact hardware specs (RAM, CPU, etc.) of a console, you could probably get it cheaper than the console. Nothing really "needs" to be replaced to enjoy the games made to run on it, it's just that PC hardware advances way faster than consoles because lots of companies build the PC parts while only one company works behind the scenes (with a little help from big names like ATI or Intel) for a console they'll release in some 2-5 years.
Both have their advantages and disadvantages for how often they're upgraded. PC's are good for those that want the most out of their gaming experience, with top-notch performance and graphics, and wouldn't mind spending a couple hundred or so a year to keep up with the latest high-end games. Consoles are for those that don't want to worry about upgrades and want to be able to play new games for the life of the console, but they don't get nearly as much improved graphics or performance on one console over the years. Another thing, once a new generation console is released, the previous generation quickly loses new game releases, while PC constantly has games being released, some that could even play on systems 5-10 years old (I'm especially talking about the free games you can download). I haven't upgraded my PC motherboard for about 4 years and I can still play Doom3 and many other recent demanding games at descent performance, but I'm feeling the impact and getting ready to upgrade it (FYI, the best AMD motherboard available is only ~$150).
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