Dropping it would destroy the Xbox brand so they shouldn't but they should for sure lighten up on the parity requirement to help developers which seems to already be happening. If developers are having trouble with it now it's gonna be an absolute nightmare for them a few years from now unless they can do stuff like remove features to get it to run ok. As this gen goes on more and more Series S versions of big games will probably be increasingly cut back so it'll become known as the console that gets the bad version of games but it is cheap so you get what you pay for.

Long term I do think the Series S will be a mistake since it's looking increasingly clear that when there is proper stock for the better consoles that it doesn't have that much appeal but it did help out when there were huge stock issues so it was good in the short term at least. I imagine that aside from that it's not been as popular as they hoped.

I mean you could pose this question about the Switch in regards to when the Switch 2 comes out. Support parity creates trust, but dropping it means you are left with one less choice and leaving the expensive one on the table isn't everyone's cup of tea.

They need to keep it, but remove pressure or soft mandates for games on the Xbox Series to support the S. We have seen some Xbox games only compatible with Series X, but they are still very rare.
Series S would benefit from a temporary or permanent price cut to $249.99. I know what Phil Spencer just said, so it's unlikely.

I expect them to fully support it throughout the whole generations lifespan, seeing as though I have invested my money into their product.

Microsoft benefited heavily by being first out of the gate as an HD console with the 360. They had a full year head start, made some amazing acquisitions and partnerships and pounced on the missteps Sony made with the PS3. Their biggest calculated risk that fell flat for them, though not in the short term, was hedging their bets on motion controls and the blue ocean that Nintendo had already courted and recognized as a shallow market. While this certainly hurt Nintendo as it would take them a half decade to regain their footing and reembrace the core Nintendo fanbase, Microsoft sullied their reputation as a "hardcore" platform. The Kinect (Natal) unveil was the same level level of cringe that WiiMusic had been the previous year for Nintendo, particularly the introduction of Avatars, their own attempt at capitalizing on Nintendo's Miis. Folks that had escaped the vice-like grasp of Sony the past two generations and made Microsoft their go-to platform saw that Microsoft was a corporate identity just like the others and the honeymoon was over. XBoxOne doubled down on some of these late 360 mistakes (while Sony made tremendous efforts to regain their position as market leader with the very successful PS4. Forced online connectivity, mandatory Kinect, etc. It was dead before it had even started, or at the very least, like the PS3 the gen before, severely wounded.

But I would argue that Microsoft shouldn't be concerned that they aren't the market leader. There's plenty of room in the market for a machine that sells 40-60 million units, especially when you can make a ton of money off of your online infrastructure. I think it's a mistake to hold Microsoft to the lofty expectation of competing with Sony, a company that has only sold less than 100 million units of their console in one generation, and they only missed it by 13 million. Microsoft and its fanbase should be content with being a niche, hardcore machine focusing on the needs of gamers that lean PC or love COD to the point that its the only game they play. In my opinion, abandoning that identity is where the wheels started falling off the bus and they should do everything in their power to right the ship, stay true to the core model they have always been about and don't worry about the console wars. It makes them look weak and reactionary.

Keep it, but allow developers to code for the X if that's what they want.

Keep it, why would they drop the one that sold the most out of the two versions.

I don't own a Series S, but I am seriously concerned and they should drop it. It really angers me that spit-screen won't be available for Baldur's Gate 3 on the Series S. It does not deserve to be supported like the PS5 or the Series X; unless of course, you were to offer the console for a couple of hundred dollars less, then I guess a few concessions would be acceptable.

Since most gamers aren't dumb asses, I wouldn't expect them to think the Series S is the equivalent of the PS5 or X. Purchasing a Series S is already making concessions, but they are minor and expected.

Just be upfront with its limitations and expectations, and it will be fine for this generation. An affordable console option with an inexpensive subscription service to a great library of games can be quite enticing. Once the generation comes to an end and the "New Generation" kicks in, then it would make sense to slowly phase it out.

No. It's selling.

The Series S is also a cheap entry for current gen. Even if some things about it sucks.

I feel some s have already forgotten the days where Series S was the better-selling Series platform.

It'd do huge damage to their brand to not have games accessible to half of their current gen audience and is really not serious question for now.. Not until a new gen has began and the series platforms are just legacy machines with a few cross gen droplets arriving from the new gen of platforms