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I doubt PC gaming is anywhere near dead. If anything, it is changing, and in a profound way. I could go into detail, but I need to get back to work. For now, I will say that the one thing that indicates that PC gaming is alive and well is the "indie" game industry.
Currently, developing games on consoles have barriers that are too high for indie designers. Designing games for the PC is far more accessible. Just about anyone can get into it.
I admit that there are certain genres of PC games that have fallen to the wayside (I'm a big fan of the underserved adventure genre), but I wouldn't be surprised to see a resurgence. The huge difference between PCs and consoles is the accessibility to gamers. Not everyone has a specific console (Wii vs. Xbox vs. PS3, etc.) but many people have PCs. You can afford to be a casual gamer and use your general purpose machine for gaming. There will always be a market for PC games. It will likely grow, if anything.
PC gaming isn't dead; it's evolving.
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Knowing that death is certain and that the time of death is uncertain, what's the most important thing?
—Bhikkhuni Pema Chödrön
Humankind cannot bear very much reality.
—From "Burnt Norton," Four Quartets (1936), T. S. Eliot
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