The "gaming market" is alive and well. As an industry, it is the #1 grossing in the entertainment sector - far more than movies.

But PC games always have their tough times. Right now the money is still in console, which is why MMO guys keep trying to figure out how to move their MMOs to the console. Blizzard might be an exception - a game with the right style at the right time. Even if WoW came out today, I don't think it would do as well as it has.