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PC gaming will never die and in many ways it's growing. But that depends on what you consider to be PC gaming.

Flash games and social media games are on the rise.

'Core' games like Crysis are a dying breed. I doubt they'll ever die completely but there's no question the industry has made the move from PC to console with PC increasingly become the poor cousin.

There's many contributing factors but I'll sum it up in two:
Piracy
Cost - Gaming PC's are simply too expensive and people are moving away from powerful desktops to less powerful but still more than adequate laptops and now netbooks.