Why do you assume there would only be droplets of games supporting the Series consoles? We're approaching the 4th year this generation and yet the majority of notable games remain crossgen and support the Xbox One as well. I don't think next gen will play out very differently as long as Microsoft drop mandating Series S support. If they keep it mandated, then yes, I can see a crap load of crossgen titles that will only be crossgen with PS5 (like RE4 Remake with PS4), but even then, the great majority of western non-AAA games as well as some/many AAA games would still support it.

In the end, Microsoft put Xbox in a situation where ultimately countless people will complain or lose interest regardless of how they handle things (because Series S/X is a misfired platform), and many of them will convert to PC. Stop mandating Series S and anger some of its biggest fans who won't consider upgrading. Keep mandating Series S and risk losing a ton of extra games.

This is the only game where Series S has been a serious problem and its only for a splitscreen mode which is extra demanding compared to single player content. Currently, there shouldn't be hysteria about Series S loosing a ton of extra games until we get to next gen (2027) which is exactly when I think it can start being a conversation

I think if a big voice said no I'm not going to make my game for the Series S, Microsoft would bend to that studio. Someone like Take Two with Grand Theft Auto 6, or one of it's own studios like Bethesda. I don't see Microsoft going the Sega route and discontinuing the Series S early.

I think the S could be retired, but still supported (with no parity) going forward

I don't think the S is even that valuable as an entry point anymore. Unless you really want in into the MS ecosystem, it just looks like poor value next to a PS5 digital.

It is an entry point into GamePass. That's where the value is and it is still very valuable.

Someone can buy the Series S and subscribe to GamePass right away, this is definitely still very true as the other alternative is to buy either a Series X or a PC (powerful enough to play those games). By far the best value in entry gaming right now imo; not to mention that you can re-use all the accessories from the Xbox One (controllers being the main thing).

Some developers are having difficulties tinkering with the series x let alone the series s,

It's time to drop it

Microsoft have put themselves in this mess! Either they drop the parity policy completely, pissing off millions who bought the series s believing they would get access to the same games and features. Or they enforce the parity policy partially or fully, meaning people will hesitate buying even the series x, knowing they might miss out on some third party games.
The only real solution I see would be to create a new Series S version that isn’t bottlenecked, and make a replacement policy, so any owner of the current model can ship their console in and receive the new version for free, that solution is extremely expensive, but they could hope that most owners wouldn’t bother.
More realistically they could drop the parity policy, apologize publicly and offer series s owners 1 year of game pass ultimate for free.

What are you talking about. don’t start that kind of stuff in a thread that is about the Series S. 

Nobody has difficulties with the Series X. It is as, if not more powerful than then Play Station 5 and no developers ever had issues developing games for both.

Games are virtually the same on both console with some games having an edge on one platform and some others on the other one (mostly due to either more support, time spent etc). 

Either you are making up stuff or you probably miss read something somewhere or stuck on something you saw 3years ago when the SDK…(which is old news and not at all the case since they updated it years ago and even then devs had no issues, few games where simply not performing as well on the Series X)

Series S was a mistake and games for X will never achieve the true potencial because of it. But now that the mistake is done they need to stick to it and own it. Dropping s would be the most fucking evil shit, it would be spitting in the face of s users, leaving them in the shit.

It's a *potential* entry point into GamePass, unless every Series S sold = GamePass subscriber which I highly doubt. 

Last I read, GamePass (and other subscription models) were slowing down in adoption. If that is the case, then I question even more Series S serving as an entry point into GamePass. 

Unless there's some data that makes claims otherwise.