I've got an Xbox, got it free with my ADSL when Telstra had a push on. Xbox can even be hacked to run Linux and I have seen a media centre mod mentioned as well. There are plenty of good kid's games available as well. Games aren't that expensive if you buy carefully, wait until they've been released for a while and you usually get them for 50% or less of the original release price. If you're into petrolhead stuff Colin Mcrae Rally is good. (yeah I know it's just for the kids)....
