The S was just a bad idea from the get go. The Xbox One X introduced 4K gaming, 4K televisions are dirt cheap and the defacto standard now, why bother doing an under-powered 1440p machine? Even if you wanted a cheaper option, it doesn’t make sense coming out with a machine that belongs in the last generation, not the current one.
They should have gone the Sony route… Series X, Digital Series X. $499/$399.
If they wanted a $299 box, keep the One X alive for 1-2 more years then kill it. Still a better choice than the Series S.