Never said they won't sell, but the conpetitive edge for consoles has traditionally been low hardware price. The 8-bit and 16-bit consoles hovered around ~$150 or so, while a PC good enough to run decent games during those times easily pushed $1500. Now that gap has lowered to the point where you can get a good PC for the same cost; maybe even less if you're really willing to dig for sales. I have nothing against consoles and still get plenty of use out of my PS2, but if a new PC and a new console cost the same I'm taking the PC 10 times out of 10.
It's not only the price, is how easy is to play a console game compared to how easy is to play a PC game. Consoles don't have drivers, installs or other things that tied to PCs. It's a whole machine dedicated to gaming, it's easier to make gaming a more pleasant experience overall.
And from the dev front is the same, it's not the same to have to support a finite number of very well known hardware combinations than the hardware mess that is PC gaming.
Either way, even if they cost of the consoles is "high" at launch, they eventually go down to a price where it's nearly impossible to beat them with a PC, so, things will probably continue the same (or are you saying you can get right now a PC to play CoD:MW2 with the same quality as a 199$ XBox360?).