Yes, even with any "manufacturer tax" it's likely going to be a fair bit cheaper to expand storage on the XBSX due to them not relying on cutting edge NAND speeds. Likewise they won't included any unnecessary hardware as you would get when putting in a consumer enthusiast class NVME drive into a machine.
It just needs to be able to guarantee sustaining the speeds that XBSX requires.
Regards,
SB
Color me skeptical. I don’t recall the 360 HDDs being high performance, but that didn’t stop MS from beating users over the head with its pricing.