This is what is baffling to me. Why in the world would Microsoft think it makes any sense at all to NOT release a Series X Pro (or whatever it would be called)? Everyone who wants the "best" console experience will buy all third party games on PS5 Pro. Decisions like this are what I referenced in another post about a death by a thousand cuts--Microsoft seems to make MANY smaller dumb decisions (no Series X Pro, releasing the Series S/X with the same controller XBO had and letting 4 years pass and STILL not releasing an upgraded controller, releasing Series S in the first place, the list just goes on and on). I think a bunch of "suits" at Microsoft make the decisions and none of them really understand the video game market the same way Nintendo and Sony do. Until they change that, they will perpetually lose the race.
Timing is everything. PS5 Pro has probably been in R&D since the launch of the PS5 if not earlier.
It appears Microsoft had no plans for a 3rd model, since that would take a lot of effort to support 3 different models AND PC and maybe they thought the payoff wasn't there like some of these posters who only think the previous gen's pro consoles were for 4K graphics in the advent of 4KTVs.
Ultimately, this is more like a stab wound than a cut.
I've talked about it before, Microsoft makes a lot of decisions that by themselves make sense, but when put together generally don't. Having the controller work on the new system is a strong move to retain players from the Xbox One userbase and carry them over, and they would know they were at risk for losing out on those players. If they put out a new controller too, none of the enhancements could be required in games, lest they not work with the old controllers. That's why Sony said you can use Dual Shock 4 on PS5, but only with PS4 games, which they got some flack for.
Releasing a haptic controller now just doesn't really do much, since again, all games have to work without it.
The Series S makes sense on paper too. People are very concerned about price, but gamers aren't necessarily cheap. All things being equal they might go with the cheaper console, but they don't want a cheaper model, and the XSS doesn't compete well in family or kid games with the Switch.
Even if you understood the market better, the damage has been done. That's why you see such negative coverage in the media for Sony, despite them having potentially a record sales year and Microsoft is in the 3rd year of their console life cycle and are already in massive decline. Excluding something like the Wii U, I don't know that we've seen a performance like this since like the Dreamcast.
They've lost this generation and the damage will carry over to the next generation.
If the PS5 drops in price after the Pro unit comes out, it'll be even more difficult for the XSX to compete because of the digital PS5 Slim.