Dear Mara, what happened here? Why is it a war between console and PC?
Hardware-wise, consoles are
always worse than gaming PC. No exception. Note the
gaming PC part there.
Any gaming PC worth their salt would always go for the best hardware. Can you upgrade a console? Nope. It'll always be the hardware it's released with (okay, so you can upgrade the hard drive, but that's not graphic-related). Can you upgrade a PC? Hell yes.
PC is better because they can be upgraded with new hardware. If you go the console way (chose not to upgrade your PC at all, probably due to girlfriends eating up your money) then console = PC.
Hardware-wise, this is not about which one is better, but which one can adapt to current technology (and I mean current as in this second), plain and simple.
Honestly, I can go by with just a bit of improvements from Oblivion, as long as they fix numerous problems like beggar sounding like an imperial soldier or bandits still robbing even though they can retire by selling their Daedric armors (how the Oblivion do they got em anyway?), and add more animation so townsfolk don't go staring at the wall all the time.
Maximize gameplay, graphics are not that important (but you have to make it acceptable)
Also, multi-core capabilities Maradamit