Each generation is different from the last, the economics of hardware costs is what spawned Series S for Microsoft. Playstation is the market leader by far and they don't need to do this. I'm not sure if that's exactly a fair statement when you're smashing your competition and people will pay the price for your ecosystem even as you're increasing the price of your console.
MS going into the market with consoles that cost more than playstation would just remove itself from the playing field. There's no near term cost reduction strategy to get Series X lower, so Series S is that strategy.
If it was only about consoles, Sony wouldn't be fighting as desperately as they are to keep the ABK merger from happening. Given the way the market leader is behaving, the secret in success is the latter.
Again Xbox Series S sales are stalling and Matt Piscatella said this is not the case for Xbox Series X and PS5. The XSS is not supply constraint people don't want the product.
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