Xbox originally came into existence because MS was losing PC gamers to consoles (specifically, PS/PS2). With the current generation, most games that are releasing on PS4 or XBO are also releasing on PC. This eliminates their original motivation for the Xbox.
I do expect "Xbox" to continue to exist, but I don't think it's coincidence that they've been placing more and more emphasis on non-gaming functionality of late. They want the Xbox to be the device of the lounge room, just as they want PC to be the device of the office or gaming den and Surface to be the device of mobile computing.
Should a time come when MS are forced to drop something, I do think Xbox will come first - it's not their core business, its purpose has been fulfilled, and they could just as easily develop a modified Windows for Media Centres as basically the equivalent of XBMC's XBMCbuntu. But they're in too stable a position right now to drop the Xbox any time soon.
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