While being the best around, the iGPU is just not good enough for any decent gaming. The whole perspective is wrong. If you already spend 500$ to build a PC why not put another 100? If one wants console quality gaming why not buy a console for half the money?
True, and many will approach DIY builds with that mindset.
And at the same time there will be many who won't/don't.
When I build for my family I don't look for reasons to add another $100 component to the build. I look at what my family members value.
They value quiet and bullet-proof stability. They value snappy - near zero delay system response to them when they are making their inputs.
My expectation is that pretty much anyone who is buying an i3-whatever type system is not going to know whether it actually has an i3-whatever inside or if it has an AMD A10/A8-whatever inside.
At that performance bracket people are spending $500 and not $1000 because they don't value the performance that comes in dropping $1k on speedy CPUs and ram. They are spending
only $500 because that is all their computer is worth to them.
Outside of myself, the fastest computer owned by a family member in my family is one that is owned by my unemployed brother who is living on an income provided by his wife who works at McDonalds. He has to have a fast gaming computer because what else is he going to do with his time?
The rest of my family is made up of folks who work and earn in excess of $60k/yr (they can afford a $1k computer if they wanted one) and yet not a one of them owns a computer that cost more than $500.
When I see these threads with raging arguments about price/performance and so on I definitely see folks who are simply disconnected with the reality of why the sub-$500 price tier even exists. It exists because people don't want to spend more, regardless however much more performance could be had if only they spent just a little more.
My mother in-law bought a new laptop last year. She paid extra to buy a 14" model versus the 15" model at the time because she wanted the smaller form factor - but the real kicker was it also had a slower CPU. She didn't care about performance, she just wanted the form factor. Performance was good enough, and for her I suspect performance of anything sub-$400 will always be fast enough.
My point is that I don't think many people walk into Best Buy or Staples wishing they could afford the $800 computer but settling for the $550 one. They buy the $550 one because that is all they want to spend on a computer, period, regardless its performance.
I've yet to meet a friend or family member who wishes to buy an $800 computer but settles for the $500 one, if they want it (and my unemployed brother did) then they find a way to scrimp and save the extra cash to buy it. Folks who buy i3's are not wishing they could buy an i5 (not the majority of them anyways), they buy i3's because an i3 is already fast enough.
They'll buy A10's and A8's for the same reason if one of them is on the shelf next to the i3 come the day they walk into Best Buy provided Joe the Geek doesn't bad mouth the AMD system and talk them out of it.