Are we still debating this? It’s a 1080p lower graphics version of the Series X. It’s like comparing a PC on High and Medium graphics settings. There is a huge market for that sort of machine. It just isn’t a machine for graphics enthusiasts on GAF.
Copying and pasting a post I made a while back below.
I have friends who are buying the Series S + Game Pass. They could afford a $500 console but usually wait a few years for a price drop. They typically play COD, GTA, Madden, NBA, FIFA, and a handful of free to play games. They don't turn on game mode, they don't calibrate their TVs, they just play games casually. They got super excited about Game Pass + EA for Madden and FIFA. They usually only buy one or two years year of the games per gen so they are find with always being a year behind on the service. They are getting a lot more entertainment out of the Series S + Game Pass than they would have otherwise.
To really hit this point home-I had a friend who had his 360 hooked up via composite video even though he owned component cables, he thought I was a wizard when I swapped the cables around. Had another friend who was running his Xbox One at 720p; 1080p blew his mind. Another buddy of mine had his TV picture size set incorrectly and was so pumped when I changed it and he could see the hud in Gears of War.
There are a ton of people out there who are absolutely ignorant when it comes to basic stuff like resolution. A lot of them are people who wait to get a console until there has been a price drop or two and there are a bunch of games out. Series S will pull them in earlier. They don't need to know or understand the difference between Series X and S-to them both can play the newest COD and one is $200 cheaper.