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I agree that Xbox one S doesn't compete with the Pro. It still competes with the PS4(slim) and for the same reasons the original xbox one was defeated by PS4 the xbox one s is defeated by the PS4.

However i think IGN thinks of it as a sales war of sorts. For people who haven't jumped into the next gen yet they see Xbox one S as the "new" xbox vs PS4pro as the new PS4.
I think this is a misunderstanding if anything.