Sounds like a simple business partnership. Happens all the time. I don't see much to freak out over.
On the consumer side, it will be interesting to see what does and does not change. With Microsoft's experience in developing streaming solutions for gaming, it seems like a very natural to add Sony as a client.
Potentially a good move for Microsoft in their fight against Amazon and Google in the consumer AI market. "In terms of AI, the parties will explore incorporation of Microsoft’s advanced AI platform and tools in Sony consumer products, to provide highly intuitive and user-friendly AI experiences."
I can't wait to disable Cortana on PS5.