Jez Cordan from Windows Central spoke in a recent podcast about Xbox Series S. He said that the console isn’t canceled but Microsoft will reveal it when they can announce the pricing of the console.
The console will not be close to Xbox Series X in terms of power. Xbox Series X is a 12TF monster but Xbox Series S will be about 4TF only. The console will be more powerful than Xbox One X but not with a big difference.
Rumors suggest that Xbox Series X price will be about $500 and Xbox Series S will be a $300 machine. By doing that, Microsoft can strike Sony in 2 ways by releasing the most powerful and most affordable console.