Just wait.

Games, consoles, PC hardware - it all gets much cheaper over time.

I suspect that this is easier for adults (we usually have more patience and are busier with other things anyway) but honestly, the games themselves don't get less enjoyable as time goes on: Portal is still exactly the same game it was when it was released, but because I bought it in 2009 when the Orange Box was on sale on Steam for $9.99, it cost me almost nothing (plus my PC is more powerful now - so graphically it's a slightly better experience than it was at release).

Since the PS2/XBOX/GC days, games are aren't looking dated as much by their technology, either: Shadow of the Colossus is still prettier than most games released today.

In all honesty? Step away from the PC for your gaming.

I don't budget much for my video gaming addiction. I probably spend a few hundred bucks a year. I have an XBox 360 that I use for nearly all of my gaming (except fairly casual stuff on my iPhone and a few small games, and Civilization IV, on my MacBook).

You can pick up a 360 for $200 -- a good graphics card on a PC will cost you that. I believe it's $350 to get one with a hard drive. (Prices are United States dollars.)

With gaming PCs, you naturally talking about much more expensive equipment, and there really isn't a "used game" market for them. (However, PC games which are older do go down in price, but they also become more scarce when that happens.)

Get a 360 (or PS3 if you're so inclined), get used games, and buy relatively inexpensive XBox Arcade and Indie games on Live. You're on a way easier hardware treadmill (not upgrading/replacing nearly as often), the graphics are great if you have a decent TV, and while new games are $50 - $60, used games (if you wait a while) can be as cheap as $10 - $20.

Find a few people who like to do the same thing. Everyone buys a game. After playing it through, deinstall. Give it to the next one. With this method you multiply the games you can play. Obviously this does not work if you want to play the games with you friends.

As a second idea: Buy computer magazines. The games on them are a few years old but every now and then you get good games for good prices. Although this is just another point for the "wait-suggestion".

Don't pay for software.

• Free demos of commercial games
• Free games (open source, abandoneware, online flash games, etc)

I would also say, be careful of wasting your money too.

• Even though PS2/GC/Xbox are very cheap, unless you have games you want for it, I wouldn't waste the money on the older system (and save it for something else)
• Don't waste money on cheap games either. For example I have paid nearly nothing for clearance games at Target, and you pay for what you get. Save your money instead
• Try a service, like GameFly
• Check out goozex. Ive traded a bunch of games on there, which lets me clear out my games (and make more than selling them to gamestop), as well as get other things for cheap.