I'm getting a sinking feeling that either games are gonna be held back by the Xbox Series S, or that not every game will ultimately end up being supported by the former.
Now that Microsoft has put all of its cards on the table, it's gonna be interesting what Sony has up their sleeves, what with them offering two of the same system specs, with the main difference being a disk drive being included in the model one purchases. Part of the reason the Sega Saturn ended up getting destroyed so hard was because Sony undercut the price of the system after Sega announced the price and released the system far earlier than what they should have. I could envision what happens next to go something like this:
*Sony could announce both for one price. Let's say $399. PS5 with the disc drive will have, say, a 750GB SSD, and the digital version will have double that at 1.5TB to make up for the lack of a disc drive. The storage space problem on the former's model could be mitigated by the feature where they're trying to get people to ask what they want installed onto the internal storage, like, say, I just want the singleplayer of Uncharted 5 installed as opposed to Uncharted 5 when both are installed.
*Or, they could go the 1TB route for both PS5s; I could see this being $449 or something along those lines if Sony wants to play it safe and not alienate consumers, but if they want to get ballsy, they could announce the PS5 with the disc drive at $449, with the digital version at $399. This would be very risky, as you still have people who buy their games physically and want to actually own something they can sell, trade-in, share with a friend, etc..
The fact that both companies are coming out with drastically different variations of their systems right out of the gate is gonna be interesting. For your average consumer though, I can already think of how confusing all of the systems will be; the Xbox Series X already is confusing with the Xbox One X, something I can confirm from personal experience with talking with an older brother of mine. There's also the fact that the Xbox Series S, while cheaper, is also a weaker system, whereas the PS5 is more straight to the point in terms of naming conventions and the differences between the two editions of the console. For us it's obvious what the differences between the consoles are, but try explaining to your average Walmart customer (at least, in my experience from working in electronics) the graphical teraflop differences between all of these systems are, especially if all they're looking to do is play the latest Madden, FIFA, Call of Duty, etc.. Granted, I doubt that a lot of people will be getting these systems in 2020 proper, but going forward, as more people adopt the new systems, I can foresee it becoming an issue.