Actually yes, somehow those PC developers are all making huge amount of revenue AND growing. New, independent developers are forming and growing on PC, while they're dying on consoles. 

How many new, independent console developers have made AAA games this generation?

You see, even though I bought The Witcher at $10 (more around $11), they made as much money as the average console developer makes from a $60 console game!! Publishers, retailers, distributors, marketing, etc... are all taking a piece of developers' money on consoles. Which is why there's so little AAA independent developers on consoles these days.

@ Mr Puggsly - Most games dosent even release on the PC? Whatcha talking about Willis!? The PC platform has more games than any other platform. If you're refering to games like Alan Wake and/or Gears or Halo etc. Its not because there's pircay. Its because MS wants to define their console.

- GFWL gets more support and major exclusives? What are these exclusives you're talking about? Havent seen anything that supports that claim? One or two games wont steal people from Steam. And the support is good and all, but if you do a google search of GFWL, you'll see that 9 out of 10 links are hate threads towards GFWL and problems with the service.

- MMORPG dosent count towards PC Gaming? Should Demon's Souls, Borderlands, Mass Effect, Dragon Age not be included in the term gaming aswell? RPGs are just a linear version of MMORPG. Dosen't demand any more skill than an MMO, id say its more likely the other way around. And what's this damage you're talking about? MMOs is probably the most popular genre out there, and with micro transactions and subscribtion fee's, it has most likely been a huge help to the PC devs.

- GFWL gaining on Steam? Not likely. Steam is the No1 pc game service, it expanded to MAC and is soon to be found on consoles. GFWL isn't even close. No matter how much support they get, MS will never invest that amount of effort into making GFWL a competitor to Steam. And alot of GFWL titles released in 2009 and 2010 dosent even use the Live feature. GFWL also had like 70 released in total between ´09 and ´10, while steam had 350'ish in the same period. The Xbox 360 had about 200 games in that time frame. Which goes to show that the statement of games not making it to the PC is just selective perception from a personal point of view, and prefrence.  

Huge amount of revenue? Probably not. Atleast not huge for major developers.

I'd be willing to agree independent developers are still going strong on PCs. They are also going strong on services like PSN and XBLA. But we both know consoles are generally the bread and butter for major and big budget releases.

I like how PC and its unbeatable value and offer width make Mr Puggsly feel so butthurt and sour grapes!   

Well yes, PC does have the most releases. If you're willing to dignify indie games. And it still does get a fair share of support from major devlopers. But many major releases don't come to the PC. Many also tend to come late, likely due to piracy. There is money to be made on the PC, but the real money is in consoles for many major developers.

I'm not saying GFWL will steal customers per se. But I do believe they'll become a major competitor and will steal some market share. I use both services personally but I mostly just buy whats on sale. On occasion GFWL has good deals.

Well I take advantage of those deals as well. I have a nice collection of games on Steam.

But lets face it, its a reflection the piracy problem.

PC piracy has grown but that doesn't always equate to lost sales, especially for multiplayer games. Either way we won't know for Steam's profitability unless Valve decides to release numbers.

As for GFWL, I don't see it doing well for the simple fact that this isn't the first time MS have said they're supporting PC, and all previous attempts were half-hearted and did more damage than good. Can it improve? Yes, but excuse us if we're just not convinced by MS' claims yet, and there is a lot of negative PR to combat.

Also, no-one really has GFWL installed on their computer as it's integrated into the games that needed it. At present there isn't an external app/service other than the marketplace, which in itself is another drawback as you have to exit a game and sign-out and load up a new game before signing in again. MS have a long way to go in the PC space...

Thing is, revenue is high on the consoles, yet profitability is ultimately quite low.

The costs of consoles (namely HD) games has been on the rise, yet the profit margins haven't really improved and even Activision, after MW2 was released was only just in the Black. Instead it was Blizzard with all the PC based profit that propped them up.

The costs of PC games is as low as ever (no royalties to platform holders) yet the profitability of the titles has increased due to digital download. If you have a first-party download service like EA or Valve then the profitability is even higher.

Starcraft 2 has shown it's possible for PC games to sell bucket loads, and with higher profit margins you can get your money back with lower sales than on consoles.

Dude, I've used Steam, it's buggy as heck, it's slow, and it slowed my PC WAY down.

I'm gonna guess you either have a slow computer or tried it out a good few years ago. There have been many updates to Steam which have not only added features but made it less process intense and buggy.