I feel like gaming companies spend too much time focusing on projections in lieu or real world numbers, and make rash decisions and baseless statements.
People say consoles far outsell pc titles, but how much money goes into licensing and physical media(as well as other extraneous cost associated with console development).
It stands to reason that if you develop for pc, cut the drm, sell the game through digital distribution, you can lower cost to the end user and increase profit margin at the same time.
Another thing to consider is that services such as onlive, in 5 years time could fully replace consoles, as infrastructure improves.
Most arguments for console gaming are born of ignorance, and could be remedied with little more than a pamphlet.