I wouldn't worry too much about PC gaming as long as there crazy developers in the Americas and Europe making equally crazy PC games. It'll just be harder to find them, that's all.
It may not be harder to find them, but it may be harder to swallow the crap that comes with big name titles. There are already a few games that have been absolutely ruined by Games for Windows Live. Grand Theft Auto IV is a chore just to start up, and the recent Super Street Fighter IV: Arcade Edition doesn't look too much better. Funny how DRM actually prevents legitimate sales rather than prevents piracy, isn't it?
Does anyone actually use their Xbox as a media center? The software looked pretty damn primitive... Oh, and you have to pay MS a monthly fee to access Netflix through it. You could build a much better HTPC for not too much more, or get a very capable Boxee device for about the same. Either way, you won't really be missing anything on TV. Cut that satellite/cable cord and save yourselves a phenomenal amount of money every year!