this is built on the GTA5 engine, with enhancements designed for current gen systems. and people would absolutely want a low fidelity version of this game if it means they can play it. Series S's problem isn't "people don't want low settings games", it's "people don't want an Xbox"
Ok, you caught me on the engine thing, technically, but you can know what I mean. If you observe the hype around GTA6 and think it would be the same if it looked like GTA 5 I dont know what to tell you. It's not reality though. Graphics are a huge part of core gaming. GTA VI looks, well it's the best looking game ever. That's a huge part of it. Inseparable, probably. I'll never forget, graphics started COD, the biggest franchise in all core gaming except maybe gta (and i have no idea which generates more revenue, i would think maybe cod?). The first thing anybody knew about MW was holy crap, how does it look so good and at 60 FPS? I was there. Another example I always think of Forza, everything about Forza is wow, look at these graphics, look at these clean, pristine, cutting edge 60 FPS visuals. It's such as hard thing to be like, here, now buy this on Series S but it's blurry. Buy everything we didnt sell it on.
I remember when the Leaker Kepler said there was a low power PS6 SKU, at that time people didnt know if it meant a Series S style PS6 SKU or a handheld (seems to be a handheld now). The overwhelming sentiment was, please no low power PS6. That is proof way more than rhetoric, people know a low power SKU is damaging. And 1000%, not only to Xbox.
I just disagree on Series S problem. Especially given people dont look at $350 and $450 disposable purchase (as we see now and I predicted, there is little real cost difference in a Series S, PS5 is currently the same price at full power) as all that different, but I've been through my thoughts on that too many times!