Think it's really that: stuff like simulations and more "hardcore" titles being in decline. It's not strictly true, what with the stuff from Matrix and Paradox, and recently DCS and Rise of Flight, but in general the selection has decreased.
There was a thread recently that revealed Ubisoft's most selling titles, and it isn't something like Assassin's Creed, but the shovelware titles that most of us probably never even heard about (some Barbie game or some such). Not really something any of us would take note of.
The market is fine, plenty of money going around, so as a platform PC is doing rather well. But at the same time a lot of (mainstream) titles suffer from being cross-platform; say what you will, but you simply can't do on a console what a PC can do, simply because current consoles have no more than 512MB of RAM, compared to 2-4GB in the average PC.
So yeah, PC gaming is not dying, but it is (has been) definitely changing.
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