Agreed about that video being awful. As well, the entire argument presupposes that every person who purchased the game used would have purchased it new if they could not have purchased it used.
This argument is terribly flawed. I'm primarily a PC gamer, but i have both a PS3 and Xbox 360 and games for both - ALL used other than Halo: Reach. I'd never have purchased any of the games other than Lego Starwars: The Complete Saga new (and the only reason i got that used, honestly, was the store i was at didn't have it new but did used). The other 15+ games werent worthwhile enough to have purchased them sight-unseen at a new-game price.
So, the developers didn't lose 15 new game sales because i bought used - i was never going to buy them new. I was not a "lost sale" - i was a "never sale". Much like piracy (a touchy subject) i think that the research would show that most people who buy used simply *are not* "lost new game sales" - they were "never gonna buy that game new anyway".
Couple that with game prices being so exorbitant and no demos... and i dont blame them.
Re: the actual topic.
PC Gaming is no more expensive than, or significantly cheaper than, console gaming.. and this will continue to be true in the next generation. Especially with Haswell just hitting the market (and, thereby, IvyBridge being marked down significantly) you ca build a pretty top-shelf gaming PC for right around 700$. As others have said, as well, you were going to have a computer anyway, so you can assume that you'd have spent money on a PC anyway if you had a console, so what your real out-of-pocket is is the difference between the cheap-ass PC you'd have bought with a console, and the price of the gaming rig.
I just built myself a new gaming PC. It isn't what a lot of people refer to as "top end" - because that now means gaming at 2560x1440 at high framerates, and not at 1920x1080. 1080p is just fine for me, however.
My rig cost me less than 700 - would have been slightly over but my Hard Drives are still totally functional so i didnt need to spend 90$ on a new one. Everything else was new (because i gave the old PC to my wife with an older, smaller drive in it). And for that 700$, i overspent on the case (A Bitfenix Prodigy, roughly 90$) and went with a better mITX Motherboard than i needed to (a nice 150$ Gigabyte model, 50$ off for bundling with Ivy Bridge CPU) so i could overclock in the future if i wanted.
I ended up with:
Core i5 3570k - performs fine for even a top-end rig, as the only real difference between the i7 and the i5 is that the i7 has Hyperthreading enabled, so clock for clock, they perform identically in games)
16GB of Corsair DDR3-1600
GeForce GTX 660Ti
DVD-R DL (LG)
BitFenix Prodigy mITX case
Nice Gigabyte mITX z77 Motherboard with 7.1 surround, dual wifi, and lots of other goodies.
All for under $700. And, if i needed it to be, it's screaming fast for daily use (i dont need it to be, i use a Mac for my daily computing/doing real computer work), but if i needed it to be, it'd be very usable.
So, sure, that's likely to be 300$ higher than the Xbone and PS4 will be at launch. It's also a lot more useful, and already outspecs them. It runs every game i throw at it at 1080p at max settings and 60fps (i havent had any desire to play Crysis 1/2/3, which would probably throw at least *some* hiccups at the system) - which is plenty "high end" enough for me.
However, the 300$ difference in cost between the Xbone/PS4 and my rig i've already saved on Triple-A games that i didn't pay sixty dollars for.
Yes, the cost of the console is cheaper than my PC, but gaming on a console, particularly the Xbone, which is going to surcharge used games, as a total, isn't any cheaper than PC gaming, and over the long run, gaming on my PC is actually significantly cheaper than gaming on a console. My PC will play most games at max or medium-high settings for the next 4-5 years... and if i need to, ill be able to extend that by simply upgrading a single component and replacing it with another mid-range part. I might even be able to get more life out of it, because, honestly, my PC is already more capable than the next console gen, and as a lot of games will be limited to what the consoles can match, that means my PC's life will be extended significantly.