The reason desktop sales has slumped isn't just because of competing devices and the cloud. It's because there hasn't been a compelling reason to get new hardware for a long time. The reason is simple: game consoles. In the last 13 years, PC games have taken a very different course than the previous 20 years. For the better part of the 80s and 90s PC games were targeted solely at PCs. For the last 13 years game publishers have targeted Xbox, Playstation[2/3], as well as the PC with the very same titles. This caused them to focus on the lowest common denominator hardware; consoles. This had the unhappy affect of holding back their developers from writing games to fully utilize the PC. Therefor PC gamers didn't need to upgrade their computers with the same frequency as they did the previous 20 years. This caused a gigantic PC sales slump. I see a very large increase in PC sales in the next few years due to new lowest common denominator: Xbox One and Playstation 4.