Commodore SuperPET: Photo by Bill LoguidiceGamasutra has another interesting "Analyze This", this time on "The Current State of the PC Game Business". While prior to the Nintendo Entertainment System's (NES) ascension, it was common and logical to believe that computers would negate the need for a dedicated game machine, since the late 80's the trend has fully reversed where it became fashionable to say that console gaming will kill off PC gaming. While that hasn't happened and will never happen, the "Analyze This" feature does have comments from analysts that indicate that PC gaming has become and will remain a large niche in light of console dominance, which is frankly hard to argue against.
While perhaps not as bold of a statement as it once could have been, I will agree that PC gaming will never again overtake console gaming and will remain nothing more than a third or fourth option in terms of mass market/mainstream development and sales. It's actually unfair to the PC to make the comparison, because the PC is a tremendous general purpose device, while a console is primarily designed to play games. Yes, the newer the console, the more stuff it seems to be able to do - play movies, music, display photos, etc. - but it's primarily thought of and primarily used as a game player. Someone looks at a PC and does not immediately think "game machine". They think "word processor", "e-mail", "Internet", "IM", etc., or simply "COMPUTER", all likely well before they think "game machine" (save for the hardest of hardcore).