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KiigelHeart said:

Series S owners getting both Starfield & Baldur's Gate this year oh the horror lol.

No that's fine

But it's more about what it means for the future. Microsoft has/had parity between the two for a reason, because without it they know developers would quickly abandon trying to support Series S because it is extra work. You could see developers just not even bother trying to implement features into Series S (bigger than split-screen) because they aren't required to anymore.

Something as niche and irrelevant as split-screen shouldn't cause a block to release but I'd still hope that more essential features still have parity requirements between the two consoles otherwise this could get bad quickly for Series S owners. So I hope this is a unique case-by-case basis and not a total lift of the parity requirement.