From their perspective I'm sure they are concerned that the PC is going to make them `less` money but that does not by any means indicate that the platform is dead or dying, ie computer-based games in general, it just means that the functionality of computers is spreading to other devices. What's going to happen when, before long, there are thousands of games available on handheld devices like iphone and other such products? And what about when consoles turn into general entertainment centers, supposedly taking over duties from audio, tv, pc and other equipment. We're seeing that each system is becoming `an extension of the pc`, a general computing device powerful enough to do pretty much anything computers typically would do, but just wrapped into a different package. In that sense general computing is not going to die it, and if anything it is spreading and increasing, it's just that the `form` that it takes - ie what box it is sold in and what that box looks like, is changing. I would also say that desktop computers are increasingly popular in spite of consoles. It's kind of inevitable that a games machine focussing on games will likely gain more of a gaming-focussed following, but what happens when the console becomes a general computing platform? It turns back into a PC, and then no longer is considered purely a games machine, and then the PC competes with it on its own terms.