So this comment really hurts MS right? Like this has to likely give the CMA all the ammo it wants
Nah. Nobody's under the impression that games that would've been in development for years wouldn't have initially been looking at a PS5 version, if not for the acquisition.
MS has upheld the release of games that were announced for competitor platforms (The Outer Worlds, Psychonauts 2, etc), if there was no public announcement, then there was no public promise committed to essentially.
That said, it's not the best timing to make such a comment, that's for sure!