I do agree the console will continue to take a chunk out of the PC gaming market, but the idea one needs a $3000 PC to play a game as smoothly as a $200 XBox 360 would run it is insane. Outside of notoriously hardware hungry games like the Far Cry/Crysis franchise, most PC games run just fine on "common household" PC's that cost $500 and do much more than a console can. Many people still prefer PC gaming to consoles, and games like WoW that are immensely popular and not available on consoles show that. I've rarely found a game I have wanted to purchase that isn't both available on PC and console, or in some cases - strictly PC like WoW and some Steam provided games.
Yep. This "game XXX will run the same way on a $3000 PC and a $200 Xbox360" is plain stupid. Game XXX will run on a $3000 PC at 4 times the resolution, on two/three monitors, with 3D glasses making it a far deeper experience, than how it would run on a $200 Xbox 360, which costs $200 and not $899 simply because it had been released 5 years ago. And any game running fine on a Xbox360 today has no problem at all running the same way (same resolution, same speed) on a cheap current PC.
Anyway, game market has changed a lot in the last 5 years, with AAA titles being mainly released for consoles, while PC gaming changed skin to a more casual or internet-oriented gaming market.