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DonFerrari said:

Yep your points make sense. And well S is the one that would benefit more from the upgrade on size since it is the only of the 4 that came with 500GB disk. But since the value proposition is the key on it and we haven't seem much complain about the storage size it may only comes like holiday 2022.

For sure.  Designing a new console, getting it in the supply chain, and waiting for it to hit stores, is a lengthy process at the best of times.  And this is NOT the best of times!

Not to mention, demand is global (case in point, Series S is reportedly easy to come by in Europe, but it's still selling out in North America) so Microsoft will be able to shift demand around first before declaring Series S actually meeting demand.  And that's without the anticipated increase in demand in places like India that they're forecasting.  People in India just got 8 months of free Game Pass as part of a regulatory change, the lucky dogs, and Microsoft might want to make sure ample Series S units are available for sale in India during that time.