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Larian drops Series S split-screen as "solution" to bring Baldur's Gate 3 to Xbox this year
(www.eurogamer.net)
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We've already established that the $300 box is not viable for much longer. And since it sold around 1/3 the numbers of the PS5, it didn't even work as advertised.
Did we establish that? Most of the biggest games are not the hardest on system requirements. And while Microsoft would obviously prefer that they sold more Xboxes and reached more Game Pass subscribers (the 25M-30M is impressive regardless), I'd be surprised if they expected the majority of those to be Series S; but they probably did recognize that that customer base is still worth reaching. We're just not at a point in the history of consoles where they all have the same business model anymore, like they did 20 years ago.
They compromised their higher end system with their lower end system. It's time to admit they made a mistake here, and they are only now starting to fix it.
I've got a really hard time calling it a mistake when it's been more successful, but you do you.