No, you're not joking. But clearly you didn't read the article either.
The MP was dropped a long time ago, this is not new news They already talked about it over a year ago.
"When you're asking for 50, 60, 70, 80 million you've got to have something interesting to talk about."
www.pcgamer.com
Seriously, what's with the baity headlines today misinterpreting small quotes that were never intended to play into console wars?
Co-op is not a regular feature of Obsidian's RPG design style, even though a few like NWK2 and DS3 do have co-op. Outer Worlds, Fallout NV, South Park SoT, even Pillars of Eternity, not co-op. There was no expectation that there would be co-op in this until this article mentioning why it doesn't have the feature we already knew it doesn't have.
And also, Series S is
not the reason Avowed doesn't have co-op. The Xbox line can handle online co-op just fine, it's just specifically the rarely-offered split-screen, full-roam co-op mode seen in BG3 (and also cut from Halo Infinite for possibly the same reason, although that game had
plenty of other issues which would have led to cuts; the hacked unfinished co-op even ran on Xbox One.) That's a particularly memory-dependent feature, and is hard to simplify for the lower scale of Series S. (It'd be a pain to develop on any platform, this is just It's also a feature not usually used (or ever?) in first-person RPGs, as it doesn't have the screen real estate to use the way a top-down RPG does. Even Obsidian's own Grounded doesn't have it, that's all multiplayer and would have been a nice match for family-style co-op on the couch. And on top of the technical issues, it's rarely used. People these days generally play online co-op, which is just as common now as it has been in the online gaming generation even with Series S because Series S poses no challenges to implementing this online feature.
If Obsidian wanted to have a co-op mode, nothing major was in the way to stop them. But it was not a priority to work out for the game they chose to make.