What i think aswell, most likely scenario.

PS1 for sure at this rate!! PS2 maybe close.

The Diablo series is more or less the pinnacle of hack & slash gaming and is widely considered as such throughout the industry (the first two, that is, in terms of quality and impact, at least).

Titan Quest, there has been a ton of new entries into this genre over the last few years thanks to crowd funding.

Diablo 3 didn't sell well on consoles. The PC version outsold all the console versions combined.
The Sims has never done well on consoles compared to the PC version.
Elder Scrolls (Aka. Skyrim) - I wouldn't be surprised if it sold better on PC than console by now thanks to longer legs, every time it's on sale it hits the top of the sales charts, it adds up over the years.

The newer Neverwinter isn't a good game compared to the original Neverwinter nights, which was PC exclusive, I didn't like Neverwinter Nights 2 either which was also PC exclusive, never lived up to the original.

If you think Hero's of the Storm, Overwatch can compete with: Eve Online, World of WarCraft, DOTA, Team Fortress 2, League of Legends, Heroes of Newerth, StarWars: The Old Republic, SkyForge and more then you are sadly mistaken, this Genre is dominated by the PC. Just like RTS.

1 Million players on the PS4 is laughable compared to the 70~ million unique players every month playing League of Legends, this is why the PC is in an entirely different league with these genre's.
That's not to say they aren't successfull on console, but typically you don't have TV channels dedicated to games like God of War like you do with StarCraft, League of Legends, DOTA 2 etc'.

As for retail vs digital. Yes Steam eats a chunky % of the price, so does Microsoft, Nintendo and Sony.
However... Digital also means that shipping, handling, packaging costs are eliminated.
It also means that developers can (AND DO IT OFTEN!) skip the Publisher tax.

The PC also allows for Publishers and Developers to ignore steam completely and the % it takes, often they will sell the same games on their own or other store fronts.
Digital is more profitable than retail in many instances, I can't actually believe anyone would argue this.

Constant cash flow is just as important as the initial cash injection from the initial sale, there is a Publisher that went under recently because they had no cash flow and their big AAA titles weren't hitting the sales mark, it gives you security as you can use that cash flow to secure new financing as you are less of a risk.

I don't think it will, mostly because I don't expect the PS4 will have the same shelf life as the PS2.

Pretty much this.

Heros of Storm, is a Beta, isn't the final game yet, and of course Heros of Storm, can compete against Dota, Star Wars,  but no one can compete with World of Warcraft, and League of legends isn't in the same level of World of Warcraft, League of Legends, is in a much higher level, 2 Years ago the last time Riot,  announced the active monthly users, was 64 Millions per month, now must be much more than 100 Millions.

Digital isn't more profitable than Retail, if the number of  digital sales isn't enought, some console games give more Digital revenue than their entire  PC Version, and Constant cash flow isn't important if you can get the Lifetime of the Constant cash Flow,   Instantly in the launch of the Console Version, and What Publisher are you talking about ?, Capcom ?, that aways release their games for PC, and that don't released a Big game in years ?, before Street Fighter V, they only had some Resident Evil Spin-offs, and Monster Hunter, even them the PC, don't saved Capcom.

Diablo 3, is a exception, and selling over 6 Millions on consoles according to VG Chartz, isn't "Don't sell on Consoles", look at GTA V, Only 5.5-6.5 Millions units sold on PC, until now, and more than 50 Millions of units sold on Console, the game had nearly the same gap from the Console, to the PC release, than Diablo 3, had.

And games sell Several times better on consoles, with a very few exceptions, if a Game sell 5-8 Millions week 1 on Consoles, is better than selling  the same ammount, or a little more, Months, or Years later, look at The Wicher 2, is avaliable for 2-5US$, Steam take 30% of it, do you really think that this give more profit than selling for 60US$ at retail ?.

GTA V, the Best selling Triple A Tittle of PC, on 2015, the Digital Revenue was of over 205 Millions, in the same year, the Digital revenue of the console version was 322 Millions, the Debut of the PC Version (on April of the same year), don't gave more Digital Revenue than the console version that launched 1.5 year before that, and on Console Retail is the one that sell the most, while on PC, is Digital.

So if is only because of Digital revenue, when the Console Market achieve a little better Digital Attach Rate,  the PC  market would be dead ?, the Main benefit of the PC Market, and of Steam, is that you can release a game in all the parts of the World without the need to release a Official physical version on each country of the world, isn't because of Digital,  the reason why they release it is to sell games on Several regions that they could not achieve with the Console Version.