In my opinion it was a good idea if looked at in a bubble. Unfortunately, Microsoft majorly screwed up this generation with its focus on GamePass, its inability to develop a large amount of good exclusive games, its lack of focus, etc.
The basic idea of a less powerful console you can get for cheap is absolutely great. I payed €200 for my Series S two years ago and to this day, whenever I get the itch to buy a PS5 or Series X I just look at the hardware prices and am instantly turned off. I know this is subjective, of course; I prefer handhelds and hybrids (be it the Switch, PSP / Vita or things like Retro Gaming handhelds), so traditional home consoles aren't my go-to choice when it comes to gaming. But the Series S was an easy purchase for me, simply because it was so cheap.
What people on message boards and hardcore gamers in general tend to forget is that many people don't give a damn about 4k or 120fps. Many people just want to get to the content, i.e. the games. I'm a huge Resident Evil fan and I played RE7, RE8, 2 Remake and 4 Remake on Series S and not once did the weaker hardware lessen my enjoyment of these titles.
Case in point: I'm playing Hogwarts Legacy on Switch 2 right now and I'd already purchased that on Series S but didn't play that version a lot, partly because I couldn't play the game on the go. I know the game looks better on PS5 Pro, but I just don't mind. The Switch 2 version (which the internet says is just the PS4 version and that version apparently sucked balls) hardly looks any different to the Series S version to my eyes and I'm perfectly fine with it being 30fps.
TL;DR: The Series S itself was a good idea. Everything surrounding it was bad, though.







