The timing of this is quite interesting, but it is not wholly unexpected given the way Unreal has become a real-time effects rendering pipeline for digital sets (like “the volume” used to shoot The Mandalorian).
It will also likely mean AAA games will step up another notch asset-wise, and that running the sprawling behemoth that Unity itself has become will still be a bit of a challenge on ordinary machines, but that’s just par for the course, I guess.