I don't think PC Gaming will die, but PC Games certainly do sell less than console games. One reason for this is that console games are generally easier to play and it's cheaper to own a $200 console with $50 games than have a $1000 PC with $50 games that you have to update every few years to play the latest and greatest!
The PC is a better platform for some games (adventure, RTS, FPS) and the console is better for others (third-person action, RPGs, sports, fighting games, etc.).
On the same topic, I recently went to a presentation by a marketing guy from Atari Games who mentioned that RTS games make up 1/3 of PC sales while "Action" Games made up around 20 % of PC sales-- pretty interesting, IMHO.
