There’s two views I see here from a software engineering perspective: multi-targeting devices with different specs can get really hard, and that modern development consumes resources in excess.

View 1: If you design a device that won’t catch up to modern expectations (limited, shared memory being the factor here), don’t expect to run all of the games. Some (or most) games will demand a certain level of resources. Microsoft either expected their status to swing their will upon the developers or were willing to help but just flopped on predicting what would be needed over the device lifetime. It’s a hard job, balancing developer need and cost. The hardware developers did their best. This comes down to

View 2: It’s an old coot viewpoint, but goddamn are modern computer programs are bloated pieces of mess. This is NOT an insult to the game developers, but it is to the OS and the engine developers as a whole. The entire programming industry has assumed that bigger more betterer computer always gonna come in a year or so. So now we have gigabytes of unused HQ textures in game downloads for no reason. Windows OS with Chrome takes gigabytes of RAM to display a webpage. We went from ultra strict data streaming to CPU rates for Crash Bandicoot to an NVME SSD shoveling half a terabyte a second when you want it in the Xbox Series X. This has left those who cannot afford strong PCs (note: most of the third world) and now consoles from playing the latest and greatest games. Developers leave them behind by grasping at the end of Moore’s Law. If BattleBit can produce good gameplay with 256 players on a raw potato, AAA game engines should try and appeal to everyone now.