Smokin', that's like saying the McDonald's cheeseburger destroyed the market for Red Robin burgers. Hardly, just because McDonald's sells way more of them, it doesn't mean it's not inferior crap in most ways.
Companies going cheap on development is the biggest reason the Windows gaming market has taken a hit in many ways. That being said, World of Warcraft has made more money than the entire Call of Duty franchise. I guess I might call it the Hollywood effect, spend a lot of money on a handful of films likely to hit it big, and throw money at random crap to get an unexpected hit once in a while?
Meh. That being said, I'd still take a mediocre console port as long as I can PLAY the damn thing.