Yeah overkill for movies, but good for games. I dunno what games you are into though, but since the Xbox and PS3 are here for another 4 or 5 years, games haven't progressed much graphically since most PC games are ports of the console games... so spending over 250ish on a graphics card is not necessary. In fact you could get by on a $150 card nicely.
Check this out,
http://www.tomshardware.co.uk/graphics-card-radeon,review-31911.html You can sort through the best graphics cards by price range.
There are a lot of great resources on that site. Check out the CPU reviews and charts and such too.