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Its possible the industry isn't in decline, just changing. It seems that hardcore or more traditional gaming on the PC as the people here understands it goes through an upswing towards the tail end of the console generations as some of the more hardcore gamers start to play more on their PCs than on their consoles. I wonder if Windows 7 had something to do with it, there were many people who were upset with Vista and refused to use it but now they can use a far better operating system for their gaming. You could argue that Steam is infact a competitor to the consoles given the fact its a distribution medium which wins on price and value compared to the typical $60 U.S.D. console games.