The Series S will probably be on parity graphics-wise early in the gen at 1080p vs same settings at 4k for the X. If they can price it $100-200 lower than PS5 discless version it will help them get an early sales lead.
I feel like mid-to-late gen, 3+ years into the cycle, the lower baseline RAM and maybe CPU will hold back Series X/S titles once devs max out usage of those resources for things other than pixel count and textures in games designed solely for new gen (i.e. larger world size, higher quality animation/sound, better AI systems, etc). They’re deciding to make a trade off between early market share and later game quality.
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