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Yes, you'll need a Microsoft account to play Forza Horizon 5 on PS5
Forza Horizon 5 players will require a Microsoft account to play the racer on PS5.
You'll also require a PlayStation Plus subscription, too, to access online multiplayer features, but solo and offline play is available regardless of whether or not you have a PSN account. It originally released back in 2021, taking the acclaimed open-world racing series to Mexico. Eurogamer called it "another gorgeous and enveloping pocket holiday" in our Recommended review, highlighting its racing's "enviable tightrope-walk between structure and player freedom".
Or read this on Eurogamer