They are a type of chip called an APU which includes a standard multi-core CPU and a comparatively powerful GPU. They are intended to eat up the low-end discrete GPU market.
The current price-point sweet spot is the A8-7600 (I think). You can build a complete computer with the ability to play most modern games at medium to low graphics, for about $400 using one of these APUs.
ImDaBaron posted this example to a thread of mine.
PCPartPicker part list / Price breakdown by merchant
CPU: AMD A10-5800K 3.8GHz Quad-Core Processor ($97.98 @ OutletPC)
CPU Cooler: Cooler Master Hyper 212 EVO 82.9 CFM Sleeve Bearing CPU Cooler ($29.99 @ Newegg)
Motherboard: Gigabyte GA-F2A88XM-HD3 Micro ATX FM2+ Motherboard ($55.18 @ Newegg)
Memory: Crucial Ballistix Sport 8GB (1 x 8GB) DDR3-1600 Memory ($71.99 @ Newegg)
Storage: Seagate Barracuda 1TB 3.5" 7200RPM Internal Hard Drive ($53.98 @ OutletPC)
Case: Cooler Master N200 MicroATX Mid Tower Case ($54.98 @ Newegg)
Power Supply: EVGA 430W 80+ Certified ATX Power Supply ($24.99 @ NCIX US)
Total: $378.09
Prices include shipping, taxes, and discounts when available
Generated by PCPartPicker 2014-10-10 11:14 EDT-0400
It needs a keyboard, monitor, and operating system and it could be upgraded later with a dedicated GPU, but then you are wasting the on-board-GPU and the CPU is less well suited than many others.