alt Hacker NewsThat doesn't really make sense. Consoles have always occupied a different space to PCs, not least because they plug into living room TVs. Very few people are going to trade that for a (considerably more expensive) PC.
Gaming PCs also require specialized knowledge, more maintenance, etc etc. Consoles are pick up and go. I very much doubt they're dead yet.
You'll likely see a lot more Steam Machine-like PCs because of this. SteamOS fixes most of the problems you mention. Price is the new normal and you should expect next gen consoles to come closer to it. It's not a bad deal anyway when you consider the bigger library, cheaper games, and no subscription required.
https://store.steampowered.com/sale/steammachine