They’ve mentioned scenarios like players using split screen causing chaos in different areas of the map. Seeing as the CPU only differs slightly between X and S models, so memory is meant to be the big difference between them, if memory is shared for keeping track of everything in the map and graphics I wonder how much they’d need to scale it down to get it working on the S while keeping the world simulation the same. Then what’s Larian’s limit on how crap they want their game to look (or they/MS don’t want a big graphical difference even if they can get feature parity).

Assuming that is the cause. Whatever it is they’re presumably putting lots of developer time into it, although at this point they’re going to be focussing on the imminent releases go smoothly and they can fix bugs quickly, then get more revenue from xbox.