Oh come on now, chief, you of all people should know better than to think PC Gaming will ever "Die" or is "Dying Out". In fact I just read a very interesting article in the latest issue of "MaximumPC" Vol 15 No 13. The article is called "2011 A Tech Odyssey" which starts on page 31 and begins with this heading and paragraph:
"PC Users are on the brink of a massive shift in technology and performance. We identify the most game-changing technologies and life-changing products for the coming year
By The Maximum PC Staff
To the PC doubters and doomsayers throughout the land, we have but one thing to say. You are incorrect. Misguided. Flat-out wrong. As we started to investigate the technologies, products, and processors that will appear in PCs and related devices in the year ahead, we realized that, from this moment on, our beloved Personal Computer is more important and more relevant than ever."
Now, granted, I'm sure your post here is referring more to PC Gaming rather than general use over-all, but, I think once the technology finishes going through the next "transitional stage" which it's going through right now as architecture changes on the market over the next few years as most home users upgrade, that we'll see a massive up-swing and resurgence of PC gaming on the market again when the next stage of new technologies (3D TV's and Gaming, TV-PC's become fully integrated) are perfected and become affordable for the masses.
I have to agree that there will most likely be a small decline before it takes back off as more main stream, but I fully expect PC's and PC Gaming to make it through any decline long enough for developers to come back to it as home users can afford more and more powerful hardware. The next generation of home PC's will be built into everything and have everything built into them. TV's and PC's are being integrated into one device now as users want to be able to browse the web and watch TV at the same time from the couch. They'll be popular and common place in the average home within the next 3-5 years at the longest. I think that within the next few years our PC's won't even look like what most of us recognize as a home PC today. Just today in fact I saw a prototype from a cube PC Gaming Rig that is more powerful than what most people are running at home now and cost about half the cost of building a comparable $2,000 rig a few years ago. Also, both Apple and Microsoft are working on models of "Table Top PC's" where the top of the table/desk you're sitting at is the actual screen of the PC you're using and it all works through a variation/combination of "touch-screen and voice activation". Your keyboard, for instance, is a built in touch pad on the screen.
Right now these systems that are being developed are expensive and still will be for the foreseeable future, but, when the average person can afford them people are going to want to "Game" on them as well, and the market for it will become even larger in the future as almost everyone will use their PC on a daily basis, even if they're just watching TV on them. Not to mention there will Always be enthusiasts and tech savvy consumers like many of us here and the many users today who call themselves "PC Gamers".
Processors alone, with the "AMD Bulldozer" and Intel's "Sandy Bridge" models will make powerful multi-core processors affordable for everyone without the need for half the user base to take a dumbed down or gimped version of a more powerful counterpart where the price difference is between 100-150 dollars for the base model to 300-500 dollars for the more powerful and longer lasting component. CPU's and Graphics Cards will be seeing explosions that make good quality powerful parts more affordable and High End Gaming more readily available to people who only buy home console systems because they can get a gaming console for 300 or 400 bucks while a powerful gaming PC can run as high as $2,500 for a system that won't need to be upgraded for 3 or 4 years.
In all honesty I think the real reason why PC gaming is taking a hit is because developers are diving into new business models that are the real thing killing PC gaming. It's these new business models combined with developers not taking advantage of multi-threading capabilities and because developers are more worried about so called "lost sales" through piracy that they either don't make PC games or they make sub standard PC games that don't take advantage of the true capabilities of the hardware that the user base has. My system here I'm using right now will be 3 years old this Christmas and I Still haven't found a game or application that even comes close to touching what my system is really capable of.
I still believe that "Cloud Gaming" will do major damage to PC Gaming as developers will want to stick with it so they can continue to milk their customer base over long periods of time and have complete control over the files that gamers have on their systems. If gamers don't actually have the game's files on their hard-drives, then there's nothing that can be shared or "pirated". As a developer your-self I hope you continue to Not go with this kind of system and to stand apart from other developers in this manner. There are many games and developers right now that are Proving that PC Games can and are making millions of dollars while still being Exclusive to the PC Gaming market, like Starcraft 2, WoW, Diablo (though I hear Blizzard is going to port Diablo 3 to consoles). Also shooters like C.o.D. Black Ops and Medal of Honor are proving that PC games are making millions on their own as the PC versions of these games often outsell their console counterparts, have better graphics than their console counterparts, and have better play controls than their console counterparts.
It's not gamers lack of wanting to play PC games that's brining down the PC Gaming market, but rather the businessmen and business practices of PC Game Makers that Are killing PC Gaming. Business models where the game makers are trying to milk their customers of money, where PC ports of games are often shoddy sub-par reflections of their console counterparts, and where support for the games in question are virtually non-existent, that are real reason why there appears to be a decline in PC gaming. If PC Game Makers actually make GOOD Games then they can be triple A hits that make millions and millions of dollars. There's tons of proof of that on the market right now. While if PC Game Makers make BAD Games then the backlash from that affects the whole PC game genre.
Gamers still want to be high end PC Gamers, they aren't the reason for the apparent decline in PC Gaming. "Business" is the real reason for the decline. If the "Business" aspect can be separated from the equation and people like Bobby Kotick can be taken out of the decision making process PC Gaming will be just fine. Unfortunately since "Money" is the Real "Name of the Game" here, that will never happen.