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GaoGaiGarV said:

I don't see Series S contribute much to that goal. Series X sees high demand and this will continue in 2021. Microsoft has to catch up with demand and if they do it will almost be holiday 21 and demand will rise again. So why should Microsoft produce and try to sell customers a $300 console if they could also sell them a $500 box?

XBSS is made to be sold to people that would very reluctantly pay $400 and never $500 or more for a console. MS made it probably to obtain a user base as large as possible as quick as possible, and also to push Game Pass.
Its negative side effect is not lower revenue on HW, even less lower profit, as both Sony and MS consoles are sold at a loss initially, but that low budget games will probably have just the low-performance version on XBS, and XBSX will get that too. Once decided to make such an underspecced entry level console for the XBS archirtecture, this bad effect can't be avoided anymore, so MS will better sell XBSS in numbers large enough to justify it, otherwise it will end up being just a thing that damaged XBSX with nothing in return.

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