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Yeah, I don't think that will happen as it just makes no sense. What does make sense is the standard console "refresh" that has been happening since the PSone age. Moving the SoC to a smaller, more efficient and less money to build manufacturing process. Putting in more storage, as prices come down over time. the PS3 came with a 40GB HDD for $499. Eventually a PS3 Slim had a 250GB HDD for $199. That is just how technology progresses.

An actually likely Xbox Series S refresh would look more like this: move the SoC down to TSMC's N5 process node, move to smaller/bigger memory chips (and therefore less overall of them, for more cost savings), put in 1TB of its flash storage, and finally keep the same $299 price. With the general drops in manufacturing prices for NAND in general, along with the smaller and cheaper SoC, smaller and cheaper and less memory chips, I'm guessing Microsoft would actually *improve* their profit margins while providing more value to the consumer at the same retail MSRP. Everyone wins haha