It's incredibly strange to me how little attention is being paid to what actual games are coming out on both these platforms. Everybody seems to be obsessed with CPUs, GPUs and frame rates, and not with what games you can play - and why we're not seeing more of them from XBox. I've still yet to see a next gen game running on Series S or Series X. Why?
I think that by this point, and even way earlier, Microsoft knew EXACTLY they cannot compete with Sony as number of consoles sold, or with 1st party games, and they went the Game Pass all the way, and the rest be damned. They know they will SOME consoles, but selling the hardware for them is not the main attraction point. They are a company with nothing to lose with their gaming division.
While they know they cannot be competition for Sony at all, they will still do anything in their power (through their cronies and false advertisement) to throw as many wrenches as they can in Sony's works. From outlets as IGN, DF, Windows Central, and their not-so-bright fanbase, they throw around insane claims, while never coming up with what actually SELLS a console - GAMES.
They don't have them, and they don't care at this point in time. They make all these desperate moves, trying to convince as many people to buy into their ecosystem, namely Game Pass, cause the rest is not there, and for them it's not what makes them tick.
Of course there are deluded people thinking that Microsoft will sell a lot of Series S to all the poor people of this planet and save the world of gaming, but I am sure that at some level even they know this is just a pipe dream. But entities with nothing to lose are just like this - denying, throwing tantrums, foaming at the mouth.
Unfortunately, in this world, where Microsoft thought they could offer some kind of competition for Sony, that is not how things are working out so far.