The subject of Microsoft's intention to release two game consoles in the current generation has been actively discussed recently, both the powerful Xbox Series X and the budget Xbox Series S. As you already know, Microsoft requires developers to release their games on both consoles if they wish to release on the Xbox as a whole.
Tadas Migauskas, the Xbox Series S' designer and producer who has previously spoken out about the power differences between the Xbox Series X and Playstation 5, claims that it will not be able to keep up with today's games in the future due to a limited resolution as promised by Microsoft:
According to Digital Foundry, the Xbox Series S may not be released in August due to technical difficulties.