Could someone explain to me why PC isn't a competition to PS4? In every one of these Console Exclusive threads you'll see one or two posters going "Fuck this, what's the point in my PS4 when I can play this on PC? I'm selling mah shit!" Isn't that competition right there?
It's a market that is a headless entity with no one organising "exclusivity" against Sony. The audience playing on PC is only partially similar to that of consoles as represented by the variation in successful games, genres, development, features, monetisation etc. Independent games flourish there and are the initial starting point of development for the majority of them due to PC being a primary developer platform with easy mechanisms to self publish and maintain a higher portion of revenue than any other platform. Importantly, developers want to be there due to the success they get, increased revenue per unit and player base. With costs of development as they are and improved tools, it makes sense to be on PC as well as everywhere else when possible, which makes agreeing and paying for full exclusivity difficult. Platform holders can not justify the cost to attain fully exclusive third party titles of large scope and scale and third parties are not so willing either compared to years ago due to what they'll miss out on.
MS are determined to get control of PC gaming, have it become a part of their revenue stream and become a competitor there. They are less willing to pick up titles and publish them on something big like Steam, betting more on having its own fully exclusive titles on its own services, at least at first, as they try to unify their ecosystems (likely with many 3rd parties not interested in publishing to a MS store front alone on PC). For Sony this isn't much of a problem, and they are having great success letting 3rd parties publish their games on PC as originally intended but grab the exclusivity with some extra money / marketing in a win-win situation. They even engage in picking up Steam Early Access titles prior to their launch.
It is entirely possible that Sony see all this and will take advantage with non-critical titles they have ownership of, and titles where the developers need extra funding, choosing to become a publisher for such games on PC thus getting a return for sales there as well for greater profit. Then again this is all guess work on my part. For all we know there might be a lot more going on behind the scenes.
Wouldn't helping more exclusives help push PC to consoles? That's the part I don't get.
The problem is that that is practically impossible. The number of excellent titles coming out on PC, where they start development, is massive. It simply isn't possible to make so many of them exclusive to console, enough that PC users would stop gaming there and move to a console. Many gamers are doing both since PCs have other uses, different features and gaming paradigms going on. Consoles and PC are not competing in the same way you think they are. If anything, they actually need each other. The two markets end up producing very different games with success varying between the platforms and their audiences