I called it ages ago.
Microsoft seems to have made the mistake of assuming that developers/publishers would be so desperate to put their games on Xbox that they would go along with Microsoft's parity policy.
Apparently at least
some would rather forego Xbox altogether than spend time scaling their game down to Series S.
What I won't tolerate is Microsoft officially allowing developers to skip on features on the Series S version.
As a Series S owner, here are Microsoft's options:
1) throw everything (spare engineering resources-wise) you have at the problem to make it all work
2) end the parity requirement but release a digital-only Series X power equivalent and offer a free trade-in for Series S owners
3) end the parity requirement but leave Series S owners in the cold
Picking option 3 means that I immediately sell my Series S. Simple as that.
Bottom line is the whole "oh come on Series S is obviously too weak and holding the generation back" argument means nothing. Microsoft promised parity and marketed Series S as being in the same generation as the Series X. They explicitly said that all games would be on Series S and would be feature complete, only running at lower resolution and/or framerate (I can accept that bit).
They can't just turn around a few years and be like:
without consumers voting with their wallets and telling Microsoft to get fucked.