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When the Xbox Series X was introduced in November 2020, it represented the next generation of Xbox console with games and capability to match, and as a part of that next-gen mentality, Microsoft introduced a more affordable version, the Series S. In the years since its debut, the Series S has remained the most affordable console of its generation with a starting price of just under $400, and this lower price is a result of its digital-only design as well as pared-down specs. In a time when gaming consoles have become increasingly more expensive each year, the Series S has remained affordable minimal price hikes since its debut, including a $20 price increase in 2025.

On a baseline level, the Xbox Series S is a technologically simpler console than the Series X. The entire point of the Series S was to be a digital-only counterpart, pruning out all but the most vital components to ensure that users could play new games via digital download, if not physical discs. Compared the Series X, which is equipped with 1TB of storage, 12 teraflops of processing power, 4K resolution capability, and an optical disc drive, the Series S is equipped with only 512GB of storage, 4 teraflops of processing power, and resolution of just 1440p.

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Naturally, it doesn't have a disc drive either, as it's only intended for digital games or streaming. Despite the reduced specs, Xbox still advertises the Series S as being capable of up to 120FPS, the same as the Series X, so while the reduced processing power means games won't be in the highest possible fidelity, they will still perform consistently. You may even be able to boost that performance by changing a few settings. By dialing down the console's specs, the Series S is able to sell for $399.99, while the Series X starts at $649.99; The Series S even undercuts its main rival as the digital-only version of the PS5 is priced at $599. 

Additionally, early in 2026, Xbox announced its next console, codenamed Project Helix, which is rumored to possess some game-changing features. With this announcement comes the inevitability that the Series X and S are gradually reaching the end of their lifespans. This could be another reason why the Series S is being discounted more frequently by major retailers, as it's the last chance to sell this console before the next big thing drops.