You're really ignoring the facts, though. The point is, if you make a game that has mass appeal (where Titan Quest fails plus it wasn't made by Blizzard) and is high quality and well polished, it tends to sell well. There are tons of examples of this.
You are ignoring the reality here, just because you make a game that has mass appeal does NOT mean that you automatically get good sales!
So only Blizzard is allowed to make PC games, because they are the only ones that deliver quality?
Strange, cause i remember Titan Quest getting fantastic reviews and a few Game of the Year nominations on PC.
Additionally, Steam sales show that lower PC prices tend to maximize your revenue. The holiday sale in 2008 had some games earning thousands of percentage signs more revenue than they did before they were on sale.
Yes they do - but this still doesnt mean that the developer earns enough money to build a stable company on that plattform alone, let alone making more expensive games for hardcore people.
The problem you have on PC is 1) less people are likely to want to blow $60 on your single player only, crappy DRM/Middleware game as they are on console, and 2) more people are willing to wait for deep discounts because they already have lots of games to play.
Sounds like a self-fullfilling prophecy to me, as it all comes down to the same point - PC market is not generating enough money to warrant big expensive games (unless you go the F2P route with Microtransactions, but thats a different story)
The problem on the PC right now is not that money can't be made, it's that many developers/publishers don't know what they need to do to MAKE money on there or they are simply unwilling to. Valve doesn't seem to be going bankrupt.
Do you think they are stupid? Publishers and developers know exactly how to make money on PC - look at the whole F2P market that makes tons! The problem is that if you do that, you need to make a game that is ONLY made for PC with all the gamedesign being build around the microstransaction model and then you cannot sell that game on console.
So the only other option to make money is by having games that are super cheap to develop - see PopCap.
But currently they still make way more money by investing that in console games compared to games targetted only at the PC (see Quake Live, Battlefield Heroes and so on)
As for Valve - why do you think Valve doesnt go bankrupt?
Because they are getting friggn 30% of whatever sells on Steam!
How many developers have such a secondary revenue stream?
Pretty much none unless you have an engine to licence like EPIC or Worlds biggest MMO like Blizzard.
So using Valve as an example is stupid!
But if youre happy to play only Valve and Blizzard games for the rest of your life - have fun