First of all, there are more methods of delivering games to the end user than are being taken account of. There are new services like Direct2Drive and Steam that deliver games directly to the customer via download. These services make buying a new game much simpler and easier. You get the game instantly via download and you do not have CDs or DVDs that you might worry about losing or breaking. You also do not have to go to the store and buy the game, taking time out of your day. It is much nicer to decide that you want the game and have it moments later to enjoy.
Secondly, consoles have more than caught up with the quality of PC games. Generally console gaming lagged behind in the quality of games compared to the newest PC games. This was because PC gamers constantly upgraded their equipment while consoles were only made every 3 or 4 years. Eventually, console games were considered bad games compared to what was new. Today’s consoles offer almost the same experience as PC games. So many people have switched to the console platform, and that has taken a big bite out of PC game sales.
A third problem is that people are tired of bugs and patches. For more than a few years, the newest PC titles have been found full of flaws and bugs. Many times in the first few months after release, there are patches that much be downloaded. From day one, a new game is not a finished or quality product, which can frustrate the buyer. When you pay a lot of money for a game, you expect it to work and work well from the moment you install it.
And finally, there are tons of free games that offer high quality and even a social environment that many like playing with. With games that are part of Facebook and other simple browser based games, millions of people have something to play on a regular basis without having to spend upwards of $60 for a new game. Many are satisfied with the free options that are on the internet to play.
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