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The only console I own/use is the PS3, and that's because at the time, it was the best Blu-ray player on the market (and still does a damn good job playing them even today.) My kids have a Wii (the oldest is 6). Consoles are great for casual & family oriented games, but for serious gaming all the consoles out there are REALLY showing their age when it comes to technology/capability. For the 12 and under crowd, a gaming console is still a great option, but to me, console these days can hold a candle against a budget gaming PC.
FTFY
You don't need a fully loaded PC to blow consoles out of the water anymore. A budget build can easily do it.
I have a pretty good gaming PC, GTX 580 for a video card, but the consoles have some pretty good exclusives that are worth owning one for. I'd buy a PS3 right now for Dark Souls and other PS3 games but I can't afford it ATM. As soon as I can though I'm getting one.
For the 12 and under crowd, a gaming console is still a great option, but to me, console these days can hold a candle against a fully loaded PC.
Xbox 360
Sony Playstation 3
Sony Playstation 2
Sony Playstation 1
Sony PSP 3000
Nintendo Wii
Gamecube
Super Nintendo
Nintendo
Sega Saturn
Sega Genesis
Sega Master System