They died along with the birth of character progression and massive online games where you could easily go online and play a few games without having to pay 20£ for using the phone line. That and the fact that modern kids rather sit alone by them self playing with their friends online then going to a friends house going on a frag fest to 1000 kills against bots.
I also think that XBL and PSN has something to do with it too.
I also think that XBL and PSN has something to do with it too.