I'll go back and reference a historical point. 7 or 8 years ago, people said PC was dead
I'll go back a bit further and point out the number of people in the 1940's who claimed film was dead as everyone was buying televisions. 70 odd years later we're still packing out cinemas and buying DVDs. There will always been room for stuff that requires more than ten minutes on the bus to play, because not everyone wants their gaming to consist of just playing Angry Birds. Anyone who wants plot and variety will still be turning on the console for an evenings play.