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I think COVID may help both boost their overall sales in short term at least.
Series S seems to be a hard sell, and I see the attractiveness of 1080p console reducing over time.
Have to say Sony's SKU split seems better, and I wouldn't be surprised to see MS follow it later.
If Series S really bombs I guess MS could drop it, which is bad for either devs who support it, or Series S owners if devs don't support it.