Back to the topic, the other option for devs, which sucks for Microsoft and Xbox gamers, is that devs would just skip the platform. Considering how many games skipped the platform during the Xbox One generation makes the XSS an even bigger gamble. Risking devs saying (and they still might) "We needed to skip the Xbox because the XSS is not 'powerful'" enough. Microsoft's biggest problem remains the number of games that skip the platform altogether.
The thing with that is most western devs don't skip the platform even during the Xbox One VCR days, and most developers elsewhere don't have much of an excuse as many have begun treating the Switch as the lead platform. The question for most devs elsewhere is where will the next Switch land hardware-wise. Will it be more "powerful" than the Series S, or will it be somewhere below that? The longer it takes for the system to come out, the more likely it will be able to "match" or exceed the capabilities of the Series S.
Just incase I need to clarify die shrinks and other advancements might make it possible to, at 720p, match what the XBSS is capable of and still be a good low cost handheld.