Since all 3 of the consoles failed to implement a physics processor (Sony wasted a whole bunch of money on Cell when a simple combination of cheap/effective CPU - such as what?s in the XBox360 - and a PPU and GPU would have done just as good if not better), I highly doubt the PC gaming industry will be significantly hurt. Now a generation or 2 from now, PC gaming might be significantly reduced because the consoles are only getting faster and faster upon debut (Xbox1, the most powerful console of its generation, only equated as a mediocre computer at the time). I?m already seeing articles claiming the Xbox 360 version of a game looks better graphically than when compared to its PC counterpart ? although PC games will catch up and surpass the 360 or even PS3?s capabilities in a year, maybe less. But if you think about it, in a next gen or two, would you rather spend thousands of dollars on multiple video cards, a CPU and PPU, along with all the other components ? or would you spend ~ $500 for a console that not only could deliver better graphics, but a better gaming experience (assuming Nintendo does start a ?revolution?)
A big reason PC games are popular is not just the KB/mouse, but the resolution. We?ve been enjoying ?HD? games for years and years, whereas consoles have been mostly restricted to SDTV.
I also think it is very possible we might start seeing ?upgrades? for consoles ? much like PC upgrades, only much less complex. Something like where you?d have ?modules? in the console that you could swap in and out core components, thus you could pay ~ $500 for a new console when it comes out, and ~$200 for a core upgrades 2-3 years later (something like a new GPU / faster CPU / whatever) so you could play newer and better games on the system after the upgrade (or just like with PCs, you could still play the new games, you would just have to use reduced settings, so you aren't being forced to upgrade). Instead of a Sony-like re-release where they took their PS1 and PS2 and shrunk them down because they could take the same old components and shrink them down ? only instead of shrinking down the old you could have newer and faster components in the same size chassis as the original. IF consoles do get that upgradeability (assuming it can be made easy, like swapping out the RAM in the n64), then I?d believe consoles could really start to inflict some damage on the PC market.
But who knows, if consoles really take such a route, then maybe its just as possible console and PC gaming could become intertwined ? where console gamers and PC gamers could play the same games and even play them together ? over the internet or whatever other conection.