Yes. AMD is lagging far behind Intel in everything gaming related. Their "best" CPUs of now lag behind 3 year old Intel parts currently. There is no price point at which AMD is a valid choice for a gaming build over a similarly priced Intel part.
If I had to recommend parts to make your friend a cheap but good gaming build, I would suggest going with a Pentium Anniversary edition in a Z97 motherboard. A moderately priced CPU cooler like a CM 212 and an easy OC. That chip OCs like a beast. I believe some current information about overclocking today and how easy it is would help you or your friend get over any fear you may have about it. A few keystrokes in the bios=big free performance gain.
This also leaved an awesome upgrade path, because if you have Z97/1150....you can move up to a Haswell/Broadwell i5 or i7 down the road.
I would recommend the same thing to you that I did to the person above. A build like this:
PCPartPicker part list:
http://pcpartpicker.com/p/YwGDmG
Price breakdown by merchant:
http://pcpartpicker.com/p/YwGDmG/by_merchant/
CPU: Intel Pentium G3258 3.2GHz Dual-Core Processor ($69.99 @ Amazon)
CPU Cooler: Corsair H60 54.0 CFM Liquid CPU Cooler ($54.99 @ NCIX US)
Motherboard: ASRock Z97M-ITX/AC Mini ITX LGA1150 Motherboard ($103.91 @ Newegg)
Memory: G.Skill Ares Series 8GB (2 x 4GB) DDR3-1600 Memory ($78.99 @ Newegg)
Storage: Crucial MX100 256GB 2.5" Solid State Drive ($109.99 @ NCIX US)
Video Card: Sapphire Radeon R9 280 3GB DUAL-X Video Card ($189.99 @ Newegg)
Case: Cooler Master Elite 130 Mini ITX Tower Case ($49.99 @ Newegg)
Power Supply: SeaSonic 620W 80+ Bronze Certified Fully-Modular ATX Power Supply ($78.98 @ SuperBiiz)
Total: $720.83
Prices include shipping, taxes, and discounts when available
Generated by PCPartPicker 2014-10-19 00:39 EDT-0400
In that small case you need to go with an AIO water cooler instead of a big air cooler. I also highly recommend a fully modular power supply. And double-checking to see how long of GPUs will fit in there...It seems to hold a pretty long GPU, listed at 343mm....