The state of Microsoft's console business answers this question.
It was a bad idea right from the start, but it got a big break during the semiconductor shortage which made it sell more than it would have otherwise. But even that has been a double-edged sword, because while Microsoft could sell all the S consoles that would have sat on store shelves otherwise, it led to the problem that the amount of Xbox Series consoles out there that have PS5-level hardware is quite low; under 20m through five years on the market. It makes third parties think if they should even bother with Xbox versions of their games when it's a hassle to get the game to work on the S as well.
While it did allow Microsoft to undercut the PS5 by $100 as far as the entry price is concerned, it came with the caveat of being a heavily gimped Xbox Series whereas the digital-only PS5 was still a proper PS5 with the exception of a disc drive.
Legend11 correctly predicted that GTA IV will outsell Super Smash Bros. Brawl. I was wrong.
