It's ofc not dead, they just started making dumb down console like games.
They focus on developing games for consoles because then they can sell it to the parents of kiddies. And kids enjoy pretty much any game with no advanced gameplay plot or skill.
Pc gamers require to have a deep and difficult gameplay usually, but no company bothers to make something that intricate, Stalker, Starcraft 2 being the only decent one for a while. It's more pc multiplayer games having success now. Dota like games (wc3,Hon,LoL) CS, CSS, Starcraft 1,2. WoW etc.
Pc will always be the only real RTS and MMO platform and the medium with the next gen grafics pushing consoles to keep up.
Also any console game is always designed on a pc's so the whole notion is just kicking itself in the rear. Because to make a console game you will require a Pc, thus really making it a pc game made to fit into a little box, Made to play on a weirdly shaped plastic board with colour'd buttons for simplicity.
What i would say its dying for is it's simplification of gameplay to a console portable level. (I can only press 5 button Hurr DuRR)
pc sales
The Sims (16 million shipped)[154]
The Sims 2 (13 million)[155]
World of Warcraft (12 million subscribers)[157]
StarCraft (11 million)[160]
Xbox 360
Halo 3 (8 million copies)[24]
Call of Duty: Modern Warfare 2 (7.481 million approximately; 6.471 million in US,[25][26][27][28] 87,374 in Japan,[29][verification needed] at least 1 million in UK)[30]
Gears of War (5 million,[31] may include PC version)
Gears of War 2 (5 million)[32]
There thread done, cookie plz.