I don't believe so. I'd argue a majority of PC's and laptops in people's homes don't even have a dedicated graphics card.
Moreover, how many steam users buy and play AAA games vs smaller, less demanding ones. And then how many people can run those games well? I don't know the answer. But if everyone had a PC that could run the games coming out today really well, console gaming would no doubt be smaller.
Last years steam survey showed that only 34% of people using steam run their games at 1080p. And the amount of people who run their games higher than that are significantly smaller.
I mean, even in steams hardware survey, 3 of the top ten graphics cards are Intel. With the next 2 after that (5 out of 12) also being Intel
So nothing but AAA gaming counts?
I can get someone saying X demographic prefers to play on console but as total markets those games count. It's not just steam, it's the Mobas and all the PC gaming in Korea, etc. That's the total PC gaming market and from what I've seen posted on GAF it's not smaller than console.
Besides once you segment it goes both ways. You could equally argue consoles are just for those who want to play a narrow niche of AAA games, PC offers more diversity for monetisation vs high risk expensive AAA games.
In the end the point is the total gaming market is large and a big chunk of it, probably the largest if you combine PC, mobile gaming, etc. is not on console.
Hence why MS seeming to switch gears (pardon the pun) to focus a lot more on PC makes sense.
Their success in console hasn't really been amazing.
Huge sunk cost to get in the game and trounced in first gen they competed in.
Solid second entry but still didn't break out worldwide and another unforeseen huge cost (RROD) and more or less drew with their main demographic competitor and lost to a left field competitor.
This gen so far has been mainly one step forward two steps back for them.
Meanwhile new markets for gaming (and media consumption) have sprung up that dwarf consoles and they completely missed mobile smart devices and a huge OS market into the bargain.
From a business perspective I do not expect them to continue to focus on consoles in isolation as their saviour. I expect them to settle instead for a specific demographic and market on console as part of a combined push with PC to try and get traction beyond the limited console market.
Scorpio sounds a lot like a device targeting US and UK market and a narrow segment of gamers (but I suspect a very lucrative one) to me while also placing them to gain any VR console customers should VR truly prove popular.
Their move on PC allows access to broader global market than they've ever reached via console, the PC VR market and more general gamers (to be blunt if bet MS would rather sell popular mobile game numbers via W10 store on laptops and PC's than 5million console units sales with huge development budget).
We'll see but I believe MS is about to officially change their play in the market and the demographic they're going to focus on.