Microsoft Xbox Series S

The Xbox Series S is the right console for buyers who specifically want Game Pass Ultimate at the cheapest possible price point. At $499, it is the only current-generation console under $500 in Australia, and the value proposition is straightforward: pay $499 for the box, then $24.95 per month for Game Pass Ultimate, and you have access to hundreds of AAA games for less than the cost of buying two new releases at full price.

The hardware compromises are real but well-targeted. The 4 TFLOPS GPU is one-third the power of the Xbox Series X (12 TFLOPS) and considerably less than the PS5 Slim (10.3 TFLOPS). The 10GB RAM (vs 16GB on Series X) is the bottleneck for the most demanding modern AAA games. Series S targets 1440p instead of 4K resolution, which is upscaled to 4K on capable TVs but is genuinely lower-detail than Series X output. For a 1080p TV or a 1440p PC monitor used as a TV, none of this matters in practice. For a 4K TV with high dynamic range (HDR), Series X earns its premium.

The all-digital design is the second compromise. No disc drive means no physical game purchases, no second-hand game market access, no PS4-equivalent backwards compatibility through old discs. For digital-first buyers who buy from Xbox Store or who live on Game Pass, this is fine. For physical-game collectors, Series X is the right answer.

The 1TB SSD is the under-noticed mid-cycle improvement. Microsoft launched the Series S with 512GB internal SSD in 2020, which was famously too small for modern AAA installations. The 2024 mid-cycle refresh doubled it to 1TB, which fits 8-10 modern AAA games installed simultaneously. Storage expansion via proprietary Seagate Storage Expansion Cards remains expensive ($250 for 1TB) but is rarely needed at the new 1TB internal capacity.

The form factor is the standout win. 1.93 kilograms, 65mm thick, vertically-oriented design that fits on any shelf or behind any TV. The Series S is the easiest current-generation console to place anywhere in a room, and the white casing is genuinely nice-looking compared to the matte-black tower aesthetic of Series X.

The Game Pass Ultimate value math. $499 for the box plus $24.95 per month for Game Pass Ultimate puts a Series S buyer at $799 in the first year (matching Series X sticker price). Over 3 years (typical console ownership cycle), total spend is $499 + $898.20 (3 years of subscription) = $1,397. For that, you get hundreds of AAA games at any moment plus same-day Microsoft first-party releases. Buying 5-7 AAA games per year at $80-110 each from PSN or Xbox Store would cost more than the subscription. The Game Pass economy genuinely changes the value proposition of console gaming.

The Australian buyer context. JB Hi-Fi at $499 is the price leader. EB Games trade-in programmes drop effective price by $50-100 for buyers trading older Xbox or PlayStation hardware. Big W and Target run console bundles around Click Frenzy and end of financial year (EOFY) that include Game Pass Ultimate subscription vouchers (12 months at retail is $299, so a Series S + 12 months Game Pass bundle at $499-549 represents genuine bundle value). Microsoft Complete at $69 for 3 years is good value on a $499 console.

The trade-off versus the Xbox Series X. Series X at $799 is the same Game Pass library at proper 4K HDR with the discrete disc drive included. Series S is $300 less for 1440p output and digital-only. For 4K TV owners who want the best Xbox visuals, Series X. For 1080p / 1440p TV owners or all-digital buyers, Series S is the smarter spend.

The trade-off versus the PS5 Slim Digital. PS5 Slim Digital at $679.95 is the equivalent-tier all-digital PlayStation. Sony's exclusive game library is the value proposition (Spider-Man, God of War, Gran Turismo); Microsoft's value is Game Pass Ultimate. Pick on subscription preference: PS Plus Premium or Game Pass Ultimate. Game Pass is materially better value at the per-month level.