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konkari said:

I doubt Sony would go for 2 separate models, they want to keep things simple for developers. If you compare the installed base of current gen, 30 million PS5, 15 million Series S and 6 million Series X (using roughly 70/30 distribution from UK data), it is clear where to developer focus is going to be. In general, it is the optimization of software that yields best gaming performance.

I wonder how the split would have ended up without the shortages and economic downturn. The Series S struck gold thanks to the the pandemic.

For a long time only Series S was available here, PS5 and Series X are only now more readily available. (PS5 both versions are sold out here again, Series X is in stock) Plus the shortages and economic fallout caused the prices to go up rather than having price cuts for the 'premium' versions by now. (They are cheaper now relatively speaking, everything else went up even more in price :/) So no wonder a cheaper alternative that was actually available is selling well, and still holding up well thanks to a much longer cross gen period from the lock down delays and shortages.

But as you said, now the PS5 has the biggest market share by far of the 'premium' consoles, so optimization will happen on PS5 first. And we've yet to find out how the Series S can hold up when PS5 / Series X target 1440p30 for a true 9th gen game. Sure it can always be ported down, the Switch is the proof of that. But the bigger the changes needed, the more time spent on porting, less time for polishing.