Since the X1 is a PC, a release will be very likely. X1 has lost the game anyway.
Exactly MS should just forget about the X1 and hurry up on Relaunch their gaming Platform for PC to compete with Steam.
If they forget about the console side of gaming they can go all out when it comes to the PC side imo.
If they Relaunch Live on PC (Not under the GFWL) but under the Name "Xbox Live" Or even "MS Live"
with games like Minecraft, Halo, Forza, Gears etc being the only place you can play them games MS would have a real good chance against steam this time.
And then just like Steambox they could allow other companys to Launch their own line of MS Box type consoles.
MS gets to work on what they are good at Software and leave the Hardware to other companys..