It's too early to see the full impact on game development since many big games will still be coming to this generation of consoles several years from now but in terms of sales it worked out since Xbox would've had an awful 2021 and 2022 otherwise. Though in the end that didn't matter much long term since they still have given up on pushing hardware sales.
For the former my expectation is the Series S bottleneck will contribute to various games during the next cross-gen period being on PS5 but not the Xbox Series due to not wanting to bother putting the extra effort in optimizing for it. I wonder if Sony will release a Series S like PS6 since a proper powerful PS6 will be at least as expensive as the PS5 Pro I imagine so that would be cutting out a lot of people if that's the cheapest PS6 so if they want to avoid a big sales decline they might be forced to do that.
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