How is this build for a $500 gaming desktop?

Solution
Personally i think this is much better, specially the gpu, which for a gaming pc, is the most important part.

PCPartPicker part list / Price breakdown by merchant

CPU: Intel Core i3-4170 3.7GHz Dual-Core Processor ($114.99 @ NCIX US)
Motherboard: MSI H81M-P33 Micro ATX LGA1150 Motherboard ($42.89 @ OutletPC)
Memory: Kingston HyperX Fury Black 8GB (2 x 4GB) DDR3-1866 Memory ($43.99 @ SuperBiiz)
Storage: Western Digital Caviar Blue 1TB 3.5" 7200RPM Internal Hard Drive ($52.33 @ OutletPC)
Video Card: MSI GeForce GTX 960 2GB Video Card ($184.00 @ Adorama)
Case: Apex SK-393-C ATX Mid Tower Case ($26.21 @ NCIX US)
Power...
Personally i think this is much better, specially the gpu, which for a gaming pc, is the most important part.

PCPartPicker part list / Price breakdown by merchant

CPU: Intel Core i3-4170 3.7GHz Dual-Core Processor ($114.99 @ NCIX US)
Motherboard: MSI H81M-P33 Micro ATX LGA1150 Motherboard ($42.89 @ OutletPC)
Memory: Kingston HyperX Fury Black 8GB (2 x 4GB) DDR3-1866 Memory ($43.99 @ SuperBiiz)
Storage: Western Digital Caviar Blue 1TB 3.5" 7200RPM Internal Hard Drive ($52.33 @ OutletPC)
Video Card: MSI GeForce GTX 960 2GB Video Card ($184.00 @ Adorama)
Case: Apex SK-393-C ATX Mid Tower Case ($26.21 @ NCIX US)
Power Supply: EVGA 500W 80+ Bronze Certified ATX Power Supply ($45.82 @ Amazon)
Total: $510.23
Prices include shipping, taxes, and discounts when available
Generated by PCPartPicker 2015-10-15 22:17 EDT-0400
 
Solution
I think the site/prices are a little older, but the basics are there. This adds an SSD (a great choice to install your OS and main programs on to make the computer feel much more responsive) but could easily be left off:

PCPartPicker part list / Price breakdown by merchant

CPU: AMD FX-6300 3.5GHz 6-Core Processor ($98.89 @ OutletPC)
Motherboard: Gigabyte GA-970A-DS3P ATX AM3+ Motherboard ($56.89 @ OutletPC)
Memory: Crucial Ballistix Sport 8GB (2 x 4GB) DDR3-1600 Memory ($44.45 @ OutletPC)
Storage: Sandisk SSD PLUS 120GB 2.5" Solid State Drive ($44.99 @ Amazon)
Storage: Seagate Barracuda 1TB 3.5" 7200RPM Internal Hard Drive ($45.89 @ OutletPC)
Video Card: PowerColor Radeon R9 380 4GB PCS+ Video Card ($188.98 @ Newegg)
Power Supply: EVGA SuperNOVA NEX 650W 80+ Gold Certified Fully-Modular ATX Power Supply ($64.99 @ NCIX US)
Total: $545.08
Prices include shipping, taxes, and discounts when available
Generated by PCPartPicker 2015-10-15 22:15 EDT-0400

This also updates to the current series GPU (in the budget)

NOTE: If you happen to live close to a microcenter, they have great motherboard/CPU combos:

http://www.microcenter.com/site/products/amd_bundles.aspx
 
other than a copy of windows and peripherals (keyboard mouse monitor) that's about all you need, and will be a decent rig for a bit over $500. this is a bit better and a bit cheaper

PCPartPicker part list / Price breakdown by merchant

CPU: Intel Core i3-4170 3.7GHz Dual-Core Processor ($114.99 @ NCIX US)
Motherboard: MSI H81M-P33 Micro ATX LGA1150 Motherboard ($42.89 @ OutletPC)
Memory: Panram Falcon 8GB (1 x 8GB) DDR3-1600 Memory ($34.99 @ Newegg)
Storage: Western Digital Caviar Blue 1TB 3.5" 7200RPM Internal Hard Drive ($52.33 @ OutletPC)
Video Card: VisionTek Radeon R9 380 2GB Video Card ($158.92 @ Amazon)
Case: Deepcool TESSERACT SW ATX Mid Tower Case ($35.99 @ Newegg)
Power Supply: XFX 550W 80+ Bronze Certified ATX Power Supply ($51.99 @ Amazon)
Total: $492.10
Prices include shipping, taxes, and discounts when available
Generated by PCPartPicker 2015-10-15 22:20 EDT-0400
 

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