So here we are back to demand. If they are keeping up with demand and the total sales being what they are, then the S is not that popular with the plebs. I expected it to be extremely popular based on price and less than critical approach of the masses just as you pointed out.
We’ve come full circle.
Satisfying the demand, doesn't mean no one wants the XSS. People want the console, and the numbers that MS produces is enough to make them not panick.
The ps5 and xsx are facing scarcity. From low production, to scalpers, which creates huge demand. People were unable to get these 2 systems, because scalpers were buying alot of the stocks. Hence why the demand is huge.
As long as MS makes XSS and immediately puts them on the store shelves, people will buy them. The price like you pointed out would play pivotal role in clearing these consoles fast from the shelves.
The real customers are those who buy the consoles after the first 2 year. Since new games are only on new gen consoles, so they are forced to upgrade their consoles. Until then, their old system still works, and have no reason to spend money.