I think the PC games market will always be around, I just don't see much growth for it. PC Games sales did decline last year -
click here. There will always be a hardcore pc games market, but for now, there is little justification for paying out a $1000 for a new computer that can play the latest and greatest, when you can pay out $200 and play probably more good games. I don't see the PC market growing much more than it already is, due to the console's appeal to the casual gamer.
My girlfriend for example won't play anything on the computer except Snood. She will however play Sunshine Mario, Super Monkey Ball 2, possible Metroid Prime, and probably Mario Kart on the Gamecube. I recently bought the Gamecube because outside of DIII, I don't see any games that I want to play on the PC. Warcraft III didn't do much for me, and the FPS market has grown pretty stale - NOLF2 was alright, not mindblowingly good. Plus, the advantage of the Gamecube is you can play with many people in the same room, just plug in an extra controller! Online gaming is fun, but it is ultimately a solitary activity, as outside of a LAN party, you have no friends to share it with in the same room as you.
I think the casual gamer market is where the growth is, and that is firmly on the side of the consoles.
Just a new Gamecube owner's and former PC gamer thoughts.
Steve