"Leak" = something we all already knew about for over a year from public records.
I regret buying my Series X at $350. Not worth the money at all. So, I would value an Xbox that can't do the most useful thing and Xbox does (play UHD movies) significantly lower than that.
Maybe $250 with the disc drive, $150 without... maybe less. It's biggest competition are streaming sticks that are way more compact, more efficient, serve fewer ads, don't charge an infinite-money-forever subscription fee to access the internet, and cost under $50.
My understanding is the Series S isn't very popular, even by Xbox standards. So a bigger, more expensive Series S that pretty much does the same things is not a smart idea.
Why they want to refresh and stretch out a generation to 10+ years when customers rejected their concept by year 2 is beyond me. The opportunity cost in wasted resources has got to be too huge to ignore.
Alternatively, they could just make an overwhelming number of great exclusive games for the platform and release them really soon... But we all know that's never going to happen. If they can't figure out how to convince people to make new games for it in the 4 years it's been out, then it's not going to be any better at year 5, or 6, or 10, or 15.
If MS were smart they would act fast to stop doubling-down on failure. Write off this entire generation as a Covid loss, page-1 refresh of leadership, and restart a new generation with a new concept from scratch by 2025.