That was a mistranslation, I've read the original interview in Japanese (famitsu). 

What the guy said when asked about which S or X is more in demand, was that he had no way to tell because they were both selling out asap, so it was a matter of stock as it stands, but he think the S will be more popular into the future because they find it small and cute.

That's no saying much

That is interesting and so is this:

Famitsu Top 50

1. [NSW] Monster Hunter Rise (Capcom) - 2.265.122
2. [NSW] Momotaro Dentetsu (Konami) – 1.000.877
3. [NSW] Super Mario 3D World + Bowser's Fury - 784.047
4. [NSW] Ring Fit Adventure – 553.908
5. [NSW] Animal Crossing: New Horizons – 423.593
6. [NSW] Mario Kart 8 Deluxe – 423.023
7. [NSW] Minecraft (Microsoft) – 304.117
8. [NSW] Super Smash Bros. Ultimate – 299.324
9. [NSW] Story of Seasons: Pioneers of Olive Town (Marvelous) – 281.140
10. [NSW] New Pokemon Snap (Pokemon Co.) - 243.607 
11. [NSW] Pokemon Sword / Shield + Expansion Pass (Pokemon Co.) - 235.103
12. [NSW] Clubhouse Games: 51 Worldwide Classics - 210.057
13. [NSW] Splatoon 2 - 196.435
14. [PS4] Resident Evil Village (Capcom) - 186.915 
15. [NSW] Super Mario Party - 184.233
16. [NSW] Miitopia - 159.586
17. [PS4] NieR Replicant (Square Enix) - 158.265
18. [NSW] Bravely Default II (Square Enix) – 136.091
19. [NSW] Rune Factory 5 (Marvelous) - 127.968
20. [NSW] Pikmin 3 Deluxe - 103.273
21. [NSW] Game Builder Garage - 102.728
22. [NSW] Super Mario 3D All-Stars - 100.954
23. [NSW] The Legend of Zelda: Breath of the Wild - 98.735
24. [NSW] New Super Mario Bros. U Deluxe - 80.508
25. [NSW] Fitness Boxing 2 (Imagineer) - 78.510
26. [NSW] Dragon Quest XI S (Square Enix) - 73.581 
27. [NSW] Little Nightmares II (Bandai Namco) - 72.796
28. [NSW] Human Fall Flat (Teyon Japan) - 68.533
29. [NSW] Super Mario Maker 2 - 67.692
30. [NSW] Super Mario Odyssey - 65.796
31. [NSW] Sakuna: Of Rice and Ruin (Marvelous) - 65.620
32. [NSW] Hyrule Warriors: Age of Calamity (Koei Tecmo) - 62.119
33. [PS5] Resident Evil Village (Capcom) - 53.953
34. [NSW] Luigi's Mansion 3 - 45.207
35. [NSW] Fishing Spirits (Bandai Namco) - 44.958
36. [NSW] Taiko no Tatsujin: Drum 'n' Fun! (Bandai Namco) - 42.507
37. [NSW] Dr. Kawashima's Brain Training - 38.944
38. [NSW] Minecraft Dungeons (Microsoft) - 38.147
39. [NSW] Kirby Star Allies - 37.954
40. [NSW] Puyo Puyo Tetris 2 (Sega) - 36.105
41. [NSW] Family Trainer (Bandai Namco) - 35.273
42. [PS4] Biomutant (THQ Nordic) - 30.292
43. [NSW] Densha de Go!! (Square Enix) - 29.624
44. [NSW] Apex Legends (Electronic Arts) - 29.057
45. [NSW] eBaseball Powerful Pro Baseball 2020 (Konami) - 27.539
46. [NSW] Disgaea 6 (Nippon Ichi) - 25.744
47. [NSW] Jack Jeanne (Broccoli) - 25.518 
48. [PS4] Little Nightmares II (Bandai Namco) - 24.968
49. [PS4] Judgment [New Price Edition] (Sega) - 24.271
50. [PS5] Final Fantasy VII Remake Intergrade (Square Enix) - 23.491

TOTAL: 9.827.835

TOTAL NSW: 9.325.680 (94.9%)

TOTAL PS4: 424.711 (4.3%)

TOTAL PS5: 77.444 (0.8%)

Top 10 Publishers

1. Nintendo - 3.975.997 (40.4%)
2. Capcom - 2.505.990 (25.5%)
3. Konami - 1.028.416 (10.5%)
4. Pokemon Co - 478.710 (4.9%)
5. Marvelous - 474.728 (4.8%)
6. Square Enix - 421.052 (4.3%)
7. Microsoft - 342.264 (3.5%)
8. Bandai Namco - 215.389 (2.2%)
9. Imagineer - 78.510 (0.8%)
10. Teyon Japan - 68.533 (0.7%)

Next week we have Mario Golf, Samurai Warriors 5 & Scarlet Nexus launching, overall sales should surpass 10 million among the Top 50 games, Koei might end up overtaking Teyon & Imagineer, thanks to Samurai Warriors 5 but WoM so far doesn't seem good so legs probably won't be good long term, while Scarlet Nexus seems like it will flop pretty hard with Little Nightmares 2 remaining Bandai's best selling game of the year by some margin.  

23% increase in sales for the remaining weeks, would mean the Switch would outsell the 3DS LT this year. So far it's been 12%

The amazon bundle sony initiative begins

The two PS5 games on the chart took a nosedive in sales.  They were at the #2 & #3 spot last week. 

17. [PS5] Ratchet & Clank: Rift Apart – 3,187 / 17,850 (-78%)
19. [PS5] Final Fantasy VII Remake Intergrade – 2,602 / 23,491 (-88%)

At this point, I am not sure if the PS5 will end the year with any games in the top 50.  Will it get any other title this year that will sell better than Resident Evil Village?  We still have over 6 months in the year left.  It seems like their should be enough titles left in the year to push Resident Evil Village off of the top 50.

There's rumour of a stand alone Ghost of Tsushima expansion like Miles Morales coming this fall.

otherwise Horizon/COD/Battlefield/Tales are the contenders. All have a recent history of shipping over 200k in Japan and will benefit from arriving on a bigger install base than RE8 did. By the holiday PS5 should have a stronger software ratio against the PS4 than it currently has

Edit: Potentially Cyberpunk too if it doesn't have a free upgrade

Microsoft doesn't have the same censorship policies as Sony. Some of the quirky Japanese games are starting release on Switch, Xbox, PC, and skip Playstation all together. I wonder if that is behind the uptick in Xbox demand. 

Stronger software ration? How?