Xbox as a console never truly made sense, it as a pc service is what it looks like they are transition in it into.

X1 sales will suffer later on due to it but it must be done, its irrelevant in much of the world and nothing can change that. A PC and eventual tablet mobile xbox service fits MS much better.

I would give it one more generation imo

I've been saying this since windows announcement.
The designer of xb1 was released a month ago. Not a single post in the thread I made announcing it.
One of the heads of xb is now leaving (rumor)
xbox exclusives now going to pc
Can't keep up. Further cuts to price will only keep costing them money.
Microsoft is working on their own chromecast device: http://www.neowin.net/news/microsoft-has-a-chromecast-dongle-in-the-works-and-it-has-passed-through-the-fcc
major shareholder calling for ms to cut xbox
In the end, there is no need for the xbox.

Like, just read the above. It's so clear.
It's exactly every step you would take before moving away from a direction.

Not saying this to be a drag to anyone. I'm a soon to be xbox user (PC) :D

If I were an investor (wait, I am)
I would say buy ms shares right now.
If they spin off xbox, shares will explode.

First bolded point: This is a way for them to draw more users in, not them giving up on Xbox. It's more of a, "Hey, get our product, because it works with everything," kind of thing.

Second bolded point: They got destroyed with the Xbox. They dominated with the Xbox 360 (until the last few years, but still an excellent product). They're not admiting defeat. They did things wrong with this console. They'll (hopefully) learn from it.

Third bolded point: Too many people are too invested in Steam. Microsoft should have done this from the start. They didn't, and at this point it would be financial suicide (maybe exagerating, but my point is "no").

Fourth bolded point: As long as there are people who want to pirate there will be pirates.

Fifth bolded point: We should never go this route. Ever. Too many issues with lag/latency, that goes back to the requiring an always on internet connection that people were in an uproar over the Xbox One. This simply will not happen.

As much as many people on this site would love it, it's not happening. They can be highly profitable as long as they don't botch their PR next time around.

Xbox is here to stay folks :)

MS never liked consoles in the first place they would have minded their own bussiness with PC if sony wouldnt be sucessfull with the playstation brand. It depends really now how much success the ps4 has for xbox to survive. If sony and nintendo both would have failed in this generation they would have pulled the plug on xbox.

It is possible and the way things are going now, the Xbox brand will live on as a Windows service. If Microsoft is to continue the Xbox hardware-wise, they'll likely release a line of gaming-focused PC's a la Steambox.

If Microsoft left the console industry, I probably would too. I might buy the Nintendo system but meh...I don't think I'd be that interested in gaming any more.

I believe much of what you are suggesting would run afoul of anti-trust / monopoly / anti-competitive legislation on the basis that MS is still largely in a dictatorial, monopolistic position wrt the PC market. Basically MS is not allowed to force the hand of independent publishers due to their dominant position in the market.

Then again, if MS started being too big of an arsehole twoards the likes of Valve, perhaps Valve would then start supporting alternative platforms more, and put most of their games on Linux. Which would then greatly help me to de-Miscrosoft my life completely. The only reason I have Windows hardware is for the gaming.

As to the question of this being the last Xbox console. It is possible. There's not much strategic value in consoles any more. MS recognised that and tried to position Xb one as an alternative to Apple TV (and similar set top devices) with it's early focus on the non-gaming entertainment side of Xb one. But they failed to recognise that non-gamers, if anything, are put off by the thought of being associated with a gaming brand. If MS wants to pivot to multi-media set top box dominance, they are both too late, and lacking in a brand that has any appeal outside of a minority of the gaming community. So now they are back to trying to increase it's share in gaming, which is really a strategic distraction because it just allows Apple and to a lesser extent Google/Android to own set top box multi-media entertainment even more.