Steam, digital distribution, etc.
I'm glad to see PC games leaving the shelves, and I'm not surprised at all about it. Here in Australia Steam offers games at a much more reasonable price, EB sells most games for $100-$120AU, while Steam sells most of them at around $50-$80US, a significant saving even after you do the conversions. Now I understand that retailers don't make much on new games as it is and they're just trying to keep their profits up, but you can't blame customers for picking the cheaper option. Heck, even without the price difference there's still the fact that Steam games are always there to install when you want to play them, sure there's the download but it's ready to go straight away, no searching for the game you want, no install DVDs and key labels that always seem to go missing, no having to fumble around swapping disks when you want to change games. And it installs updates for most of the games automatically and usually while your system is idle, so you don't have to hunt around for it when you happen to run into a game breaking bug.
I guess I see the merit in saying consoles are "winning" the "game war", but considering that pretty much every game I consider worth playing winds up with a PC version on Steam anyway I don't see what the issue is. If anything I think digital distribution will become the norm, even for consoles, and a few years from now physical game disks will go the way of NES cartridges. It's why I think BluRay is struggling to get a foothold, they've essentially released an upgraded version of a medium that's on the way out anyway. You'll probably find them in garage sales for fifty cents a box while every new game, movie and software package is purchased with credit card or Paypal or some prepaid system like MS Points. Heck, I reckon the next gen of consoles will be solid boxes with no disk drives, and a power and AV port as the only connection points with wireless handling everything else.