It sounds like they don't want a repeat of the Cyberpunk 2077 scenario, where it would barely run on base PS4 and Xbox One hardware.
To me it sounds like Xbox Series X owners are going to be left out of a game they should be able to run, because MS won't let them release a game that won't run on the Series S.
PS5 should be fine, and with the popularity of it they'd be crazy to skip it. Although it depends when they actually release it. If it's not coming out until PS6 has been out a few years, they may well do. I can't see it taking that long though.