We like the more powerful -- and expensive -- Audioengine 5+ speakers, but have always had a soft spot for the smaller and more affordable Audioengine 2 speakers, which come in white and black and retail for $199.
The new iPad starts at $499 for the Wi-Fi 16GB model. Ideally, you'd probably want to go with the 32GB model, but hey, if you only want to spend $500, let the kid bring the iPad back to an Apple Store and upgrade it to whatever capacity he or she wants (as long as he or she pays for it).
The Vita offers a true next-gen gaming experience in the palms of your hands. It's somewhat pricey, but grads won't care too much about that if you're paying for it. Just don't forget to pick up a memory card when you buy it.
Logitech's Wireless Boombox for iPad is a portable -- and affordable -- Bluetooth speaker that also happens to sound good. Though its name implies that it's designed for the iPad, it also works with any Bluetooth-enabled smartphone or tablet.
Sure, Sony may announce a new PlayStation next year, but the versatile PS3 Slim, with its built-in Blu-ray player, remains a relative bargain at $250. What kid wouldn't want one in his or her dorm room?