For those of you who remember the golden days of the Amiga, you might recall Sensible Software (creators of Sensible Soccer, Cannon Fodder etc) blaming piracy for the imminent death of the platform, shortly before they abandoned it and the whole platform died (beyond a minority of die hards).
I recall one of the writers or editors at Amiga Power (a UK Amiga gaming magazine -"With an Attitude!") lamenting how the industry (publishers, the gaming press, developers etc) all believed the Amiga was dying because of issues like piracy, modern consoles, etc. I don't remember his name but this guy suggested that the death of the Amiga was a self-fulfilling prophecy because everyone decided it was dying.
Had development and innovation continued, the Amiga might still be around today? Who knows?
Despite that, PC gaming isn't going to die because as long as everyone in the western world has a PC and wants to write e-mails, type letters, order things online and stuff, they will want to play games on it to.
I think the worst that will happen is that PC gaming will become terribly unfashionable for a decade or so, compared to the trendy consoles. And personally I regard that as no bad thing.