While it looks like Smash, things like this happen all the time. Not to mention Jap companies are a lot more lax about 'ideas' appearing in other games. And there has been other Smash clones, like the Onimusha spin-off from Capcom. There won't lawsuits, but many people will frown on this anyway, as Sony is one of the big bad wolves of the PR circle.
Good for them, though. Many PS3 owners would love a Smash fix. Just as they don't mind a kart racer or kiddie-platformer or other things seemingly Nintendo territory.
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