Makes sense
PlayStation owners win
PS5 now gets games from studios that PlayStation consoles never got games from before.
Microsoft win
Microsoft’s games are now no longer constrained to PC and Xbox consoles, providing the quality is there, the games will sell
Xbox owners lose
Xbox Series S/X has lost a huge selling point, console exclusives. That small audience of 30 million is unlikely to grow and, as a result, Microsoft’s interest in their own consoles will wane too.
The only issue now is potential is Sony arrogance. With no exclusives anyone with half a brain will tell you a next-gen Xbox is dead on arrival.