Don't believe what you've heard—the state of Windows gaming is still strong.

Nine months after Windows 7 hit the market, Microsoft has rehabilitated its reputation on desktop PCs. The company has effectively banished memories of Vista's poor performance. Still, PC game sales have been off this year, sometimes by more than a few percentage points, depending on the study.

It's tempting to mount a passionate defense of PC games. Others are already predicting a comeback, though whether or not PC gaming really left in the first place is an open question.

Regardless, we want to offer a clearheaded look at some of the issues affecting Windows 7 gaming in mid-2010. Some issues transcend the PC; for example, a big part of the problem is the increasing amount of cash it takes to develop a top-notch game—PC, console, or otherwise. The mixed reception of a few high-profile titles like Spore and F.E.A.R. 2 can easily put the fear in game industry executives hesitant to commit $15 million to anything less than a "sure thing."

Probably now more than ever, AAA titles have an easier time receiving funding if they're part of an existing franchise, be it yet another sequel to a proven series or a tie-in to an upcoming movie. Thankfully, independent developer studios are picking up the slack wherever necessary, and are creating innovative, original IPs like Machinarium, Geometry Wars: Retro Evolved, and Torchlight, all of which are just as much fun to play as $50 titles.

Still, there's plenty of reason to be optimistic—not the least of which is killer franchises like Mass Effect and BioShock, which we certainly want sequels for. Let's go through some of the latest hardware and software developments, with a quick survey of some of the best games and platforms they're available on. We'll also offer some thoughts on digital distribution and the current state of the gaming experience on PCs.

It turns out that our hobby has matured in some ways over the past few years—and moved in a few surprising directions.