Secondly, the console market isnt really there for MMOs. Most console only players are playing the twitch based games and are not really willing to sit for hours questing and grinding that MMOs often demand.
False. DCUO sales on the PS3 are equal to the PC. The game doesn't even exist on the XBOX< if it did, both consoles combined >>>> PC sales.
Consoles have had MMOs since 2002, and some of them lasted for 9+ years, even with small subscriptions.
Additionally, RPGs are HUGE on consoles, and grinding in RPGs is standard practice for many console games especially JRPGs.
MMOS are indeed bigger, much bigger on PCs.
But games like EQOA, FFXI and DCUO show that done right, a console MMO can be a big hit with fans, and DCUO showed, even with casuals, who are the real money for the developers.