Gaming has potential, it just needs the right developers love
PC gaming used to be the pinnacle of gaming, where developers were proud to push the latest engines every 12 months. Now we're having technological leaps and bounds every 3 - 5 years. The last time a developer did something out of the box and pushed the boundaries that I can remember were in three instances.
Valve with the release of Half Life 2 and their amazing physics and facial animation - 2004.
Crytek with the release of Crysis and their amazing destruction and open levels - 2007.
DICE with the release of Battlefield: Bad Company 2 and their amazing DX11-based title (which was still a multiplatform release) - 2010.
To finish, I put a question out to NVIDIA, AMD and Intel.
NVIDIA and AMD both make bucket loads of money selling hardware to Microsoft and Sony (NVIDIA powers the PS3 and AMD powers the Xbox 360) and both companies are constantly pushing the boundaries of GPU hardware every 6 - 12 months right up to the last two weeks with the release of dual-GPU based solutions in the form of the AMD Radeon HD 6990 and NVIDIA GeForce GTX 590.
But why do you need these behemoths of technology? NVIDIA and AMD push new GPUs every few months for really, no reason at all. A GTX460/6850 will run every game out right now at 1920x1080 at 30 - 60fps (depending on the game).
Consoles render at below 1440x720 and upscale to higher resolutions like 1280x720, but there are hardly any AAA games on consoles that actually render at 1920x1080. Yes, the console is capable of 1080p, but 95% of the games on it never get close to that resolution. Yet, all games are developed on consoles with these limitations in mind and thus, pushed onto PC gamers who have PCs that are capable of far higher detail, resolutions, maps, etc.