It's one of the cheaper consoles.
It also comes with a fairly expensive SSD, CPU.
I've always personally thought the XSS is a terrible idea, because cutting down the GPU so much doesn't save them enough money to put the console at a price that makes any sense. You're getting 1/3rd the GPU of the XSX, and that isn't enough to save $200, which is pretty much the minimum price difference to make any kind of sense.
Wait so it has the same CPU as the Series X, paired up with a weak GPU? This thing better come with 3-6 months of Gamepass Ultimate!