Take-Two reports that hardware makers have sold 94+ million current-generation video games consoles. Let's do some math.
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I got it for backwards compatibility since there’s so little worthwhile stuff being released these days. Game Pass is a good bang for the buck so people will keep buying Series S for their kids, otherwise MS would be toast. With titles as good as upcoming ones timed exclusivity might be enough to get some market share.

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People invested in the Xbox ecosystem probably already have one, though.

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I usually see Series S as a sole or secondary system so that your kids can game on a budget. When you’re gaming on subscription service you’re not really invested in the ecosystem and I think Microsoft is banking on a low barrier of entry. Unfortunately for them that also means it’s rather hard to retain those people. They might achieve a spectacular success in 2025 and have nothing to show next year.

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