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We're really comparing two different device purposes, here...

When I need to do video work, etc., I go upstairs, hop on my PC, then let it run while I come downstairs to the living room, power up the HDTV/360 and play an FPS with my son. Using a single PC for everything works for some people in some situations, but not for everyone.

I have no desire to maintain a PC upstairs and a gaming PC downstairs when I can simply hook up a 360 to my TV and not have to worry about OS upgrades, hardware upgrades, etc. My next gaming machine upgrade will be a next-gen Xbox or Playstation in about 3-4 years.

Yeah, PC gaming can be the pinnacle of the gaming world, but it will take a lot for it to kill off consoles.