No, WPF does not replace DirectX. DirectX will still be still needed to make cutting edge games. The video performance of directX is still many times higher than WPF API. So when it comes to game development the preference will be always DirectX and not WPF. WPF is not a optimum solution to make games, oh yes you can make a TIC TAC TOE game but not high action animation games.
One point to remember WPF is a replacement for windows form and not directX.
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