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They won't.

Its more likely that this will be the final XBox to push technology. I think they'll now focus on the same pattern that Google/Apple/Amazon have shown with full mobile set-top boxes that have some gaming focus.

Basically, they'll change to lower spec'd machines that run an all digital Live system. Probably stream higher-end games so they can also compete with future Nintendo/Sony consoles.

This is an important long-term goal for them in order to keep Windows and Office important. If they lose the living room its only a matter of time before they lose the office as well. People won't want to have different OS in their different environments.