Earlier quoted context omitted.
All three of the PS3/XBox360/Wii generation consoles used POWER-derived chips: very different chips, of course, but POWER all the same. The Wii U uses a POWER chip too. POWER stalled in the performance/watt category around the time of the Power Mac G5: unfortunate, since this was around the time that performance/watt was starting to be considered a real thing. That hurt the architecture's standing terribly. But it's…
Any ideas why PowerPCs stalled in performance? Is PowerPC really an architectural dead end?
So, it isn't that PowerPC is doomed from a technical standpoint. Instead it's all about money, business cycle stuff. Less sales means less R&D. Less R&D means you fall behind of the competition. IBM doesn't really have the heavy hitters they used to in the chip business (Relative to Intel/ARM/TSMC). If you want the newest flashiest tech, you can't really use their fab - that sort of stuff.
Every chip technology node is getting more expensive for foundries, which means the chip market will likely naturally converge to a small number of players.