Why Does the Xbox Series S Have Less Storage? An Inside Look

As a hardcore gamer myself, I was initially puzzled when Microsoft revealed the Xbox Series S would only include 512 GB of SSD storage, less than half of its big brother, the Series X. However, as someone who closely analyzes each new hardware launch for my gaming tech channel, I‘ve come to understand the rationale behind this decision. Let‘s take an in-depth look.

The Bill of Materials Balancing Act

Creating a brand new gaming console is all about striking the optimal balance between performance and pricing. This usually comes down to carefully evaluating every component that makes up the bill of materials (BOM), which is a breakdown of the production cost per unit. For the ambitious $299 price point of Series S, cutting back on storage helped offset other cutting edge parts needed to deliver next-gen gaming.

According to reports from DFC Intelligence, the flash memory storage on a new console can represent 5-15% of total BOM costs. So a 512GB drive likely saved Microsoft anywhere from $15 to $45 compared to the 1TB option. When multiplying by millions of units, those savings quickly add up!

Average Game Sizes Ballooning

Over the past two console generations, average game install sizes grew substantially due to increasing textures, assets, 4K capabilities and more. Let‘s look at how the storage needs have increased:

Console GenerationAverage Game Install Size
Xbox 360/PS3 Era4 – 8 GB
Xbox One/PS4 Era25 – 50 GB
Xbox Series X/S Era75 – 150+ GB

As you can see, games now take up 5X more storage space on average compared to the Xbox 360 days. Software developers leverage the extra space for higher resolution assets, but it comes at the cost of storage capacity.

Projected install sizes for some upcoming Series X|S games include:

  • Starfield – 150+ GB
  • Forza Motorsport – 100+ GB

So the 512GB drive on Series S allows for just 3-6 average sized games before requiring external USB expansion. This severely limits convenience and flexibility for gamers juggling multiple titles.

Targeting Casual Gamers Who Buy Less Software

During the official Series S announcement, Microsoft framed the console as delivering "next-gen performance in the smallest Xbox ever". The compact design, lack of a disc drive, and lower $299 make Series S better suited to more casual gamers on a budget.

Industry analysts believe Microsoft is betting that more casual players will purchase less software overall. So a limited capacity is a calculated risk that should be sufficient for the target demographic. But that sacrifices flexibility for the minority who take a more hardcore approach on the entry-level console.

Why I Ultimately Upgraded My Storage

As an avid gamer juggling over a dozen titles across various genres, I fully maxed out my 512GB of onboard storage within 2 months of buying an Xbox Series S at launch. I definitely represent the type of enthusiast gamer Microsoft claims Series S "wasn’t primarily designed for".

Upgrading to the Seagate 1TB Expansion Card has been a seamless experience now giving me substantial breathing room. Although at $219, the add-on storage nearly doubled my overall investment.

I don‘t regret choosing Series S for its affordability and "good enough" 1440p gaming. But the limited storage remains a nuisance I hope Microsoft addresses on their next iteration.

So in summary, while shrinking the storage capacity for a $299 new console seems justifiable on paper, it‘s an area lacking long term practicality that forces many gamers to cough up more for upgrades. Striking the optimal balance between hardware costs and real-world functionality remains an ongoing challenge.

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