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A lot of assumptions in the original post.

Some of the biggest selling features for consoles are ease-of-use and guaranteed compatibility for new games.

Until PC/OS companies make their machines and software as simple as plugging in a console and putting in a disc, there will be a significant market for consoles.

PC gamers seem to be the hardest core users... they want maximum settings, performance, mods, etc. That's great for PC gamers, but it's not for everyone. I quit PC gaming (except for RTS games) primarily because I didn't have the time to keep upgrading my PC every other year so I could play the hottest games without knocking the settings way down.