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Larian drops Series S split-screen as "solution" to bring Baldur's Gate 3 to Xbox this year
(www.eurogamer.net)
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I thought Microsoft was the one requiring feature parity. It sounds like the real story is MS caving.
Yes. It's in the Xbox Requirements, as in, the checklist of stuff you need to fulfill if you want to release a game on Xbox. To be precise, it's test case 130-04: Featured Game Modes.