Just dump the hardware they are not selling any anyway. S is keeping tech back and PS5 Pro will be lapping the X soon.
It's not the XBS holding tech back, it actually has more tech than the PS5, it has the same CPU and GPU hardware features as the XBX, just with lesser "numbers".
For instance, the Xbox's have VRS (Variable Rate Shading) and Velocity Architecture but it's hardly used as it does not exist on XB1, or different consoles like PS. Very few games actually use it, but when it is used, games like Doom Eternal and Gears 5 shine. But of course comes at an expense as they have to code for without it for other hardware meaning more cost. From what I recall, the Xbox'es actually have dedicated ML hardware which again is not used for same reasons as above.
Then we have AMD FSR which is at a hardware level in all next-gen consoles including XBS, yet again few games support this and some that do, are doing it at a software level. Very few have implemented FSR at hardware level.
What we are seeing now is that games that have specifically coded to utilise the hardware of these current-gen hardware look and run absolutely fantastic. But the studio owners and companies don't care about that, for them it's about selling games, as quick as possible, as cheap as possible. So spending more money for developing not only for different console manufacturers, but also different console generations, and then also wanting to build for different current gen hardware, it hardly happens.
Look, the Series S is not a powerful console, but if developed against how it was designed and use its hardware, it works and performs great.
It's the developers/studios/companies holding back games as they want the games to reach the widest audience for those sakes, and that means writing games with a common code base as possible which means no feature specific hardware will be used.