This article is misleading at best. It's fair to include the price of a case and peripherals, but it doesn't need to cost $1000. One could easily spend this much, but the point of the video was budget parts. A serviceable case and keyboard/mouse combo cost about $50 each, new. Windows 11 can be downloaded and used with core functionality for free
The current gen consoles are good value. If one only has $500 to spend, get the PC, because it's useable as is. There are many games that are actually free to play. With a PS5, new games are $70. Older ones are cheaper, but the free tier is much worse compared to PC and there's a monthly fee to play online. Last point, if one's budget is this tight, gaming should be a lower priority and a PC is infinitely more useful for work.
Many people have a work provided laptop and I know I need some time to unwind. A PS5 makes a lot of sense in that situation.