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Larian drops Series S split-screen as "solution" to bring Baldur's Gate 3 to Xbox this year
(www.eurogamer.net)
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The console itself wasn't a mistake. Their promises of feature parity was the mistake.
Not making it have the same amount of RAM was also a mistake, it could have been just a weaker GPU which would have had less issues.
Whoever made that decision obviously never worked in gamedev.