I fear the alternative is Sony hoovering up more 'defacto' exclusives where given the choice between dealing with S or skipping Xbox entirely, more devs choose the latter. You can force the issue if you have the market share to be unskippable... But Xbox is not and does not.
He can't seriously believe this choice will realistically happen.
Xbox Series is at, what, 22 million units sold by now? By the end of the generation, probably double that. Presuming Series S is still around then, the choice of the headache of getting a game running on Series S vs missing out on potentially millions of sales is not a choice any developer (more like publisher) will be taking lightly. It's why Larian are getting MS engineers in to try to make it work rather than giving up completely. If developers just threw in the towel if they faced some hurdles in development, nothing would ever get released.
If a game is completely skipping Xbox, there will be other reasons for doing so: historically low sales on the platform, differences in geographical interest (ie. Japan), exclusivity deals on PS5, no developer experience with the platform (ie. Japan...) etc.
Microsoft would not be prepared to lose games completely over their Series S requirement and I can see it being dropped as soon as it becomes a serious barrier to the game releasing. Just like historically dumb requirements like "XBL Arcade titles must be 50mb". If
Microsoft were given a choice between a game releasing on Series X only, or not at all on Xbox, which do you think they will choose?
A sticker on the box to clarify hardware requirements can do wonders.
EDIT: Oh, look who was right:
Imagine what we would have if devs didn’t have to accommodate for the archaic hardware in the consoles..
To a 4090 rig owner, a PS5 is what the xss is to xsx owner?
Your 4090 is already archaic hardware for this particular game, it struggles to hit 4K60 on low settings. No one is really prepared yet for the UE5 titles using the full feature set.