I just wanted to write all this in a clear concise thread so that I can have everything I'm predicting in writing. I expect this to happen.

So, without further ado:

Boyd Multerer was the designer of xbl, xna (language), and the xb1 core architecture. He was released from MS around Christmas to pursue new opportunities. At the time of leaving, he was said to be working on secret unannounced stuff  at xbox. -source ign

Phil Harrison has now confirmed departure 6 days ago. In an interview he says, “games will continue to prosper across Microsoft under Phil Spencer’s leadership"- source GamesIndustry
Phil goes on to create development company Alloy Platform Industries. The company licenses some as of yet unannounced Microsoft tech. In an interview says it's related to gaming as  "the largest at-scale consumer market in tech right now is games"

At GDC we have comments from Phil Spencer saying that xbox is going to be about an ecosystem of devices. They want developers to have full access to any medium they'd like. He also announces that xbox will have a unified library with PC. He also says not to think of xbox as a console. Think of it like an ecosystem.

As of March 31st, in a Windows 10 update, we now see the browser branded with Halo called Spartan. MS is trying to tie Windows with Halo. Furthermore, Microsoft removed the name Xbox from their music and video divisions once called Xbox Music and Xbox Video.

In 2013 Microsoft officially got behind a wifi streaming certification called miracast. In October 2014, they added compatibility support for Miracast in w8.1 to follow with w10. Microsoft released a dongle which allowed for the streaming of PC onto any platform with a USB. With the compatibility update, MS can allow PC to stream onto anything with this dongle.

Windows 10 is currently designed to emulate the look of smartphones and includes touch screen functionality. They also have Smartglass, which can turn your phone into a second xbox screen, or potentially, a second computer screen with Miracast technology.

Microsoft have originally said that they wanted the xbox1to be a set top box not unlike a cable box. Such a system could be rented out and charged as a fee on a monthly basis. Such a console could be designed for cheap that could stream all the services like netflix, and even games, from your PC.

Recently, we also heard that MS wants to "refocus on the pc" in order to challenge Valve on the homefront. This coincides with rebranding windows with halo terminology. Valve's current strategy is to bring PC gaming to the tv, through steam machines.

In short, I believe that all the information available leads to the conclusion that MS is trying to find a way to do what the steam machines are doing, through a dongle, or some kind of set-top box that would use miracast to stream from your pc. This would in turn, surpass current hardware restrictions as far as each individual consumer requires (by upgrading the pc).

Currently, the xbox inhibits game adoption rates because the price-tag is so hefty...the entry cost is large, and is outpowered by the ps4 specifications. Streaming from the PC would create a new segment of users to market towards as they can now play PC on tv without a price barrier.

Basically, by streaming from pc to tv, MS can bypass hardware restrictions (like being underpowered), erase price barrier, compete with steam, unify their ecosystem, and open up millions of users to xbox software. It basically accomplishes all the goals they want. Similarly, they can do all the same through cloud streaming, like Playstation Now. Whether you have a pc or do not, there is a solution.

I believe that at e3 we will hear about a new streaming service, likely in the form of a set-top cable-like box or dongle. I believe they will provide streaming to all the users at the conference. I believe that this is part of their "never been done before surprise". Imagine what it will be like when they say "just hook the device to your tablet, phone, or hotel room tv, and we will stream whatever demo you want to play". I think they could even do this DURING the conference.

Anyways, those are my thoughts, take what you will.
I think xbox is going to stay, but only for convenience sake...for those where owning an xbox is simply the most convenient. I don't think we are going to see the same kind of firesales and promotions around christmas-time. I think we will see a replacement solution for the xbox, and I think we're going to see it soon.

Thanks for reading, and please post your comments below.
-scrambles

My PC is able to run the latest games but playing on my work setup is a pain. I would welcome the ability to stream from PC to Xbox especialy if I can play Steam games... the question though, unless they are exclusive to Xbox,why would I buy Xbox games rather than PC and Steam games?

Being able to access your Xbox live account and play the game on PC would be huge step for Microsoft, Basically taking away the need for the consoles at all. Xbox One game could then be streamed to TV from the PC. Wi-FI enable Kinect 2.0 that allows stream from PC. Cross buy between PC and XBox One would greatly increase the number of software sold.

Being able to play with your friends that have bought the game on Xbox live or don't own a PC.

I agree, this is the most likely route MS is taking. The Xbox brand will stay and will be the brand for all things gaming. This is something they have started with a long time ago with the WP and tablet games and i think we will now see the ecosystem evolve into something new, platform independent.

Whelp, e3 didn'go the way I had planned, but I'll reserve my prediction for next year.
Sorry for the necrobump, but as of the recent news that MS was looking into streaming pc to xbox, I think this brings the thread back into relevance as it's a partial confirmation of my prediction.