Gaming laptops cost WAY more than that. You're looking at at least $1000 for a decent one. You could always get ones they have for $500, or so. They just won't last.
Apparently this laptop is able to run Oblivion according to the reviews at their site. I was thinking about getting this laptop to run Oblivion myself. I would like to be able to play Fallout 3 too. I wouldn't have to mind turning the graphics at the lowest possible setting, that;s not an issue with me.