PC gaming seems to be doing quite well. But I suppose it depends on your perspective.
For people who want to play triple-A console games on PC, it's a mixed bag. On the downside, you get some bad PC ports, some annoying DRM, and sometimes games are released late or not at all on PC. On the upside, as mentioned, PCs are way more powerful than the current console generation, and you can often buy games for very cheap on Steam or the other digital distribution channels.
PC gaming also remains very strong in the subscription/microtransaction MMO space. And also seems to be doing quite well for casual / social gaming.
I think about PC a lot, since I'll be releasing my game on PC in the nearish future. So I'm currently viewing things from an indie perspective. For indie developers, the PC space has never looked better. The rise of digital distribution has created a new channel that circumvents many of the problems with traditional publishing, namely oppressive contracts, poor royalties, and difficulty even getting signed at all. In the old days, if you couldn't get signed by a publisher, you were pretty much out of luck. Now days, signing with a publisher is unnecessary and perhaps even inadvisable if you can fund your own development.
Of course, if my game flops, I may end up with a different view on things.
Another huge change that has thrown open the indie scene is the availability of cheap game engines. In the old days, working with an established game engine was way out of reach, costing many hundreds of thousands of dollars. Unity played a big part in changing all that, and as soon as the other big engine makers (unreal, source, crytek) started seeing everyone migrate to Unity, it forced their hand to offer competitive deals to indies too.
Piracy remains a concern for all PC developers, both triple-A and indie. But how much that affects the final sales is a hotly debated topic. Most times it is discussed, it gets pretty flamey.
Here's an interesting gamasutra article from the guys who made Amnesia, the Dark Descent.Amnesia: The Dark Descent Sells 200K, Developer Lauds PC As A Growing Platform