There has been some talk in the industry that PC Gaming is slowly dying off. It somewhat intrigues me with the certain arguments presented on the topic, that not only seem vague, but null all together. For instance retail sales of games. Naturally, between the DS, PSP, PS2, PS3, X-Box 360 and of course the Wii, the number of games sold is incredibly high compared to PC. Better yet, when they talk about retail sales of PC's, it seems a bit ridiculous to me to include ALL PC's that are sold compared to Gaming consoles. Of course more PC's are going to be sold than consoles alone. That just seems to vague to me considering you don't know what PC's are actually Gaming Rigs.
It's hard to say that PC Gaming isn't doing well with titles such as the Sims, and obviously World of Warcraft. World of Warcraft is pushing 10 million unique subscribers at $15 a month. That alone tells me PC Gaming is not hurting at all, but what it also tells me is that growth, and more importantly variety has somewhat flat-lined.
Being the avid gamer I am, I play 3 different consoles, and on my PC. From what I can tell, PC Gaming isn't getting shoved out by Consoles. I foresee an integration of Console and PC. To think of them as one may seem far-fetched, but if you look at the similarities between Gaming Consoles and PC's, the line is getting thinner between the two. The only real major difference I see between Consoles and PCs is how you interface with the machine.
This is not to say that PC Gaming isn't thriving like it once was, but it certainly isn't going away anytime soon. I think what has happened, is that Consoles are just more user friendly than PC's. It's also less expensive. Take for example the game Crysis. It's a very graphic intensive game. You will probably need to upgrade your PC's RAM, and Graphics card to even enjoy it on the games lowest settings. RAM isn't cheap, and neither is a Graphics card. You're looking at least a couple to a few hundred bucks to have a gaming rig capable of handling the game. When you look at consoles in regards to their games, the games are designed around what the console can already handle. So no upgrades, and less nitty-gritty to actually play the game, you just pop in the disk, and blam! You're good to go.
So what I see has happened is Gaming Consoles has opened up the Gaming market to more casual gamers, or in other words, less techno-knowledge to just enjoy a game. Although, either way you look at it, their are draw backs to both.
More freedom (I.E. Modders)
Low variety of games
Have to know more about technical stuff (I.E. RAM, Graphics, etc...)
Game Console Pros:
Less techno-knowledge required
More user friendly
High variety of games
Game Console Cons:
As systems get better, they become more vulnerable too breaking (I.E. RROD)
Interface is not optimizable
System Backwards compatibility (I.E. 3 different PS3's)
So if you were to ask me if PC gaming is dying, I would absolutely say no. Even though Gaming Consoles have seen major growth, and PC rigs have not, the market for PC Gaming is still huge, but constant.