I think it's more accurate to say it's shrunk down to some niche developers with large followings. Blizzard, Valve and id do very well focusing on the PC space. Other than that, though there aren't a lot of big PC-centric developers.
Valve has just gone multiplatform with the Orange Box, and id's Rage is coming for both HD consoles as well (not to mention the Mac). I expect Half-Life Episode 3 to become even more console centric, too...
