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Why Baldur’s Gate III is an accidental PS5 console exclusive
(www.engadget.com)
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What I don't understand is why they don't just release both Xbox versions without split screen and then try to patch it in later. That way they'd satisfy the feature parity requirement (as I understand it) and people could at least play the game. I love that they're still doing split screen despite it seemingly having fallen out of favour these days, but it's hardly an essential feature.
The article says they're not allowed, legally, to do that, and the ball is on Microsoft's yard.
As far as I can tell the article only talks about a feature parity requirement between the Xbox Series S and Series X versions. And that could be met by just dropping the feature from both versions.
They may or may not have the requirement anymore, but they definitely used to have this parity clause as well. Then if it came to other platforms first and Xbox later, the Xbox version had to have bonus content beyond the original release.
I also thought they might have such a requirement but I was unable to find a source that confirms (or even mentions) it. Definitely still possible though.
I remember it coming up on podcasts back during the 360 era, so that was long enough ago that things may have changed.