I know it does. Skyrim is playing well enough now, however, where there isn't any lag or stuttering. It's just that I lost some eye candy. Incidentally, in a way that's what fried my desktop: over heating. The processor went as did the power supply, my Radeon HD 6850 video card, and the four built-in fans. All at once. That's when I decided to buy my first and last laptop. I built that desktop four years ago at a cost of $2,500. Now I am retired and on social security and can't afford it. The laptop was $450.
I built half a dozen PCs in 2008, three of them for games, and never spent over $1500, and generally, a lot less, to do any of them. You must be referring to Ozzie dollars or you just didn't do much shopping around at all. I've been stuck on SS for a while longer than those four years, as well. When I build them, they always have thermal monitoring software running that will shut them down before any damage can occur, however, it really sounds to me as though you had one or the other of two disasters, either a catastrophic failure of a power supply, or a major power surge you weren't aware of.