I agree that it is easier to purchase a console in today's society which has drawn a lot of the crowd away from the PC. I'll elaborate more by saying that we 25-30+ year olds had consoles as kids but they weren't multi-player. The magic of that connection back in the day was the PC because there wasn't the Xbox/PS services. You had AIM, ICQ etc. Computers were on the rise, games were new and not resource hungry, requirements were lean: Quake, doom, UT.
Consoles show up: Streamline the multi-player experience, reasonable cost, easy for parents, just as easy for kids. That takes away from PC games/gaming. Lower base for PC.
Is it shrinking? Yes. Will it go away? Never. I sit a friend down on the PC who swears by consoles, give him a few minutes of getting used to the controls on a game with MAX 1080 144Hz with 60+ FPS. Show them a library full of games that they can stream around the house (thanks steam) etc. I get the same response: "How much?"
It ain't cheap but it sure is pretty.