Yeah I don't think consoles are in any trouble. Even though PC may always be at the cutting edge, there will always be people out there who would not prefer the complexity(?) of PC gaming or simply prefer the console experience.
Heck, I still even buy a next generation console to so I can media server it up (and for the games, of course). My PS3 does a great job playing anything I throw at it now, even 1080p .mkv files, surprisingly. A much better solution than going downstairs with my laptop to watch stuff.
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