NextGen Console or..Gaming Computer??

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Lately I've been thinking about whether I should buy a next gen console; Not sure whether I want a PS4 or an XO, or save up about 100 more bucks for a decent gaming rig. The PS4 which is the cheaper of the two consoles would end up costing me nearly $700; $400 for the console, $120 for two games, an extra $60 for a extra controller, plus tax. I could build a rig for under 1k.

Here's some specs I pulled off a site:

CPU: Intel Core i5-3570 3.4GHz Quad-Core Processor ($214.99 @ Newegg)
Motherboard: Gigabyte GA-Z77-D3H ATX LGA1155 Motherboard ($116.98 @ Amazon)
Memory: G.Skill Ripjaws X Series 8GB (2 x 4GB) DDR3-1600 Memory ($46.99 @ Newegg)
Storage: Western Digital Caviar Blue 500GB 3.5" 7200RPM Internal Hard Drive ($59.98 @ Outlet PC)
Storage: Samsung 840 Series 120GB 2.5" Solid State Disk ($99.99 @ Amazon)
Video Card: Sapphire Radeon HD 7850 2GB Video Card ($190.98 @ Newegg)
Case: Cooler Master HAF 912 ATX Mid Tower Case ($49.99 @ NCIX US)
Power Supply: SeaSonic 520W 80 PLUS Bronze Certified ATX12V / EPS12V Power Supply ($77.98 @ SuperBiiz)
Optical Drive: Asus DRW-24B1ST/BLK/B/AS DVD/CD Writer ($19.98 @ Outlet PC)
Operating System: Microsoft Windows 7 Home Premium SP1 (OEM) (64-bit) ($89.98 @ Outlet PC)

Total: $955.84

I'm torn between the console and the rig, I wanted to know some of your opinions.