You didn't even touch on the casual game market for the PC, which is really booming and creating tons of revenue for game makers like Pop Cap. I haven't seen the sales numbers for Plants vs. Zombies, but I'm sure it'd make us all salivate, and the budget to make that game obviously wasn't astronomical. The PC Gaming market isn't dead, it has just evolved into more of a focus on less hardcore games and more digital distribution. There are still hardcore games (Starcraft 2, Diablo 3, etc) and still retail distribution, but both are the minority.