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Sogreblute said:

Some Smart Delivery games only have the Xbox One version on the disc. Metro Exodus and Resident Evil 8 are just 2 examples. Some games actually has both versions on the disc or has 2 discs. It's a game by game basis and unfortunately the case doesn't mention if an internet connection is required, so we don't know what games has both versions on disc(s). At least from what I hear all Xbox Series X games except COD has the full game on disc(s). Flight Sim and Devil May Cry 5 SE are 2 examples. 

And of course as @jason1637 pointed out, some games just barely has anything on the disc rendering the disc completely useless without internet. So to add to that Forza Horizon 5 is one of those games. Apparently it has to do with the base (VCR) Xbox One unable to read blu-ray discs above 50gb, so games with big storage cannot fit both versions or can't even fit one on a disc. That would mean publishers need to use two 50gb discs and even then it may not be enough (I could be wrong on this, but it would make a lot of sense).

So what's the best option? Well for games that can fit both on one disc or two should be 1 case. For those can't just separate the 2 versions in 2 different physical releases where one has the Xbox One version with the ability to download the Series X version, while the other is the Series X version. So basically what Sony is doing already with PS4/PS5.

Correct, the base (VCR) Xbox One, the PS4, and the PS4 Pro can only read BD discs up to 50 GB.  Only the PS5, the One S, the One X, and the Series X can read larger than 50 GB BD discs.  The One S and One X were upgraded past the 50 GB limit kind of by accident, they were actually upgraded to read UHD movie discs, and the ability to read larger data discs is just a happy accident.  But one they can't take advantage of while also having the disc readable in the base Xbox One.  Sony elected not to do that upgrade, not even for the PS4 Pro, until the PS5.

But as previously mentioned, even if the entire game is on the disc at launch, patches/upgrades over time will render more and more of the data on the disc irrelevant anyway.  And you usually can't play the game (at least not while online, and especially not for multiplayer) without installing all the updates first.

I don't see much advantage to separate Xbox One and Series X versions of games at retail, when developers regularly keep updating/patching the game after release, often for years.  I mean, even if the launch version of a game like R6: Siege is entirely on the disc, the current version of the game bears very little resemblance to it.  Perhaps the one and only time having the entire game on disc is actually valuable from a game preservation point of view would be an anniversary/GotY version where the game is pretty much end-of-life from a software development point of view, that disc might be playable for the long-term without reams of downloads.

If the game can even fit on any disc, given UHD discs top out at about 100 GB, and there are more than a few games that are 100+ GB.  I guess you could put multiple discs in the collection, but that drives up costs (less so for the discs, actually, moreso for the packaging) and isn't a common or popular option with publishers anymore.

Back on topic.  As more gamers go all-digital, and especially as game streaming becomes more of a thing, the small size and low cost of the Series S suddenly makes a lot more sense.  When I stream a game to my Series S, I'm streaming the Series X version of the game.  Generally the Series X version in performance mode, as it's limited to 1080p@60, mind you, and with some compression artifacting.  But that's pretty cool, and that experience will probably improve over time.  Presuming good latency, I can see the day where streaming the game to a Series S offers higher fidelity than playing the game locally.  Then there's the wildcard of AI-enhanced upscaling.  All of the above lends itself to Phil Spencer's comments that the Series X will sell better initially, but that the Series S will sell better over time.