It's not that PC Gaming is dying..... it's just that people tend to prefer "what you see is what you get" factor.....
Most people prefer playing on a big screen HDTV while on their couch..... of course you can do this on your PC to it's just not that practical with PC Gaming (I mean I know you can use a wireless Xbox 360 controller but it's just not what PC Gaming is meant for.....)
PC Gaming tends to be more for the hardcore graphics gamers.... and hardcore gamers.
ANOTHER REASON IS.... well the Xbox 360 and PlayStation 3 is CHEAP..... and many people want somethin' that you just buy, plug, and you ready to play with. Plus this cheap factor also introduces another thing..... more people on the online network (Xbox LIVE and PlayStation Network). Plus don't forget..... PC Games don't have this "central" gaming network where everyone can connect to. PC Games have their own servers (usually) for each game or series or whatsoever. If Xbox LIVE was transported to PC (I mean a serious transition not a crappy Games for Windows games are only qualified kind of transition) then PC Gaming might succeed. Most people get the game not only for the single-player (lonely lol) part but for the multiplayer action... PC Gaming has several people but their on different servers.
PC usually has the best graphics around (as long as you have a beast PC or at least a moderate PC) and bringing a PC back to modern gaming standards doesn't cost that much....
For example:
A 2005 PC with
Intel Pentium 4 2.6GHz LGA775 Processor > Upgrade to Intel Pentium Dual Core for $50... or a better processor Intel Core 2 Duo E6300 for $80.
LGA775 Motherboard with PCI-E x16 Slot and 2x DDR2 slots
2x sticks of 512MB of RAM equaling 1GB > Upgrade to 2x 1GB (for $10-$20) or 2x 2GB (for $20-$30)
Intel GMA 950 128MB IGP (these IGP's were common in low-end computers back in 2005-2008.... it still is now but not as much as back then) > $60 upgrade to a Nvidia GeForce 9600GT (they sell these GPU's for $60 at TigerDirect)
Overall it's just around $130... not saying that's not that much but seeing that people can buy games occasionally for $60 every month or so.... well yeah.
Plus a decent PC with Intel Core 2 Quad, 4GB of RAM, Nvidia GeForce 9500GT, etc. is just $499 around the corner... it's not cheap but it's cheap in general terms when getting a gaming PC. I had a 8400GS (Lower-end 256MB DDR2 version) and I coupled it with a X2 3800+ 2GHz and 1GB of RAM and ran Crysis with it (on Windows XP cause Vista would always give me SLOWWW load times) and it ran on 1440x900 (native resolution of my monitor) at Low-High Settings (Most on Medium some like Shadows and Vegetation on Low and Physics on High) and I got 20-50FPS which isn't bad.... I got an average of around 25FPS. Games on consoles usually are locked to 30/60FPS... usually 30FPS. Meanwhile a 9500GT will do better most likely.
Another thing is DRM thingies and serial number and sh*t..... it's because of piracy. Piracy rate on PC is higher than consoles (most likely but it's just my "estimation")
Another thing is people think tinkering around with PC's is um, dangerous (to tell you the truth it isn't no matter what.... it won't burn you or anything well it will of course just that in years I've been tinkering around with PCs well yeah)
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