The series S is a console in big trouble because it only has 8G VRAM.
Agreed, in the long run. MS under spec'd it IMHO.
And this idea that developers are to blame or that it's due to poor optimization, is baloney.
When you make a game for a system and you know its exact specifications. Then the game doesn't function properly on the system you made it for? No sorry, blaming devs isn't all baloney. Though I will say MS has it fair share of blame to own on the Series S.
So developers develop for the biggest market, and that's PS5, a console that happens to have blazing fast custom I/O chips, custom decompression chips, and 16GB GDDR6. PS5 can pull in assets and decompress textures like no other machine can. PC are struggling to keep up, the bare minimum has been set, 16GB VRAM, anything below that and PC will struggle for a whole generation.
Now that is so far off base I don't know where to start. Yes the PS5 is the big chunk of the gaming pie, but it is not the whole pie, not even close. And devs want their games on every system humanly possible, because...more sales. So that means PS5, XBS S/X, Switch and PC (low to high end). So when devs code their games, on some level they have to aim for the lowest common denominator and scale up from there. Granted not all games can make cut to every system. The Switch as its pretty dated and MS and Sony are pushing their games to the 'new' consoles. Plus oddly your whole argument(s) is based, frequently no less, on strictly the PS5. For Sony exclusives thats great. They can aim for the stars and maximize their titles. But most games are multi-plat. So the rest of the industry, does not have that luxury. Lets do some quick napkin math...
(I took hardware sales out of the equation for obvious reasons)
Games sales:
PC boxed/downloads/browser worth 40.5 billion
Console games 58.6 billion
source:
https://www.protocol.com/bulletins/mobile-gaming-decline-newzoo-2022
Break it down further considering Sony has 70% of the market share in world wide console games sales. So the 58.6 billion becomes 41.02 billion, approx.
source:
https://en.as.com/meristation/2023/02/21/news/1677012238_006400.html (ie these are MS numbers but still its ball park)
But hey not all sites agree on these numbers you get Statista stating higher sales for just digital for PC.
PC 45.6 billion
Console 37 billion
In 2021, total console gaming market sales amounted to 32 billion U.S.
www.statista.com
And why they don't all agree on the numbers, you can see some trends form. Clearly PC is good for about 40-45 billion or more in games sales with console coming up in the range of 45-58+ billion range. And PS5 isn't 100% of that slice (70%ish). This is proof the PS5 isn't the big slice of the market you seem to think it is (?). Yes its a huge chunk of the console games market but it isn't THE big player in the overall market like you think it is, PC is right there with it. PC and Sony are practically tied. AND because they are, devs will target PCs various (nearly countless) different specs...including the ever so common 8GB card. 27.9% of Steam users have 8GB cards....the largest group by far.
https://store.steampowered.com/hwsurvey/Steam-Hardware-Software-Survey-Welcome-to-Steam
Yes I agree 8GB needs to be entry level 50 class then evaporate after that. 8GB is just weak sauce at this point for PC. But at the end of the day devs will code for 8GB being a extremely common vram set-up for most PC gamers. Seeing as RTX 90/80 users are a tiny fraction of the PC user base.