I find it really hard to take this at face-value. The CPU power difference between the S and the X is negligible; it's the GPU cuts that are the biggest drawback. It makes sense to me that games on Series S get cut-back to enable playable performance, but I don't think the existence of a less-powerful GPU meaningfully limits the scalability of console titles on the bigger console.
> Coupled with the complete lack of worthy first party or dedicated IP beside Forza
That's just like, your opinion man. It's been nice watching Microsoft start publishing smaller titles in an age where the future of gaming is looking more-and-more bleak. Sony's IP library is starting to get milked dry, in comparison. The big exclusives are a Final Fantasy remake, a Demon's Souls remake, an upcoming Metal Gear Solid III remake... I've already played those games. The biggest reason I can muster to buy a PS5 is so I can play Bloodborne at a stable framerate. Sony used to have just as strong of a sell as Nintendo in this regard, but I think we're starting to see them fall from grace.