There are plenty of playable beginner guitars under $200. Ibanez and Fender both make beginner's packs with guitar, gigbag, tuner, strap, etc that sell for $99.95. Hohner makes decent sounding solid tops that we sell in the store for $189.00 (hw600 model). Go look around and play some. The Ibanez and fender models come with limited lifetime warrantys.
Quality at this level gets better every year. DON'T buy anything from the big box stores (Walmart, K-mart, Best Buy, etc.), they sell true crap.