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The Xbox One X was a very ambitious idea and seems like a good product, but it didn't help the Xbox One's sales that much. I don't think we have hard data of lifetime sales of the Xbox One X, but I would be very surprised if it was over 5 million. It makes sense to cut off the X then. It's the most expensive Xbox One in terms of manufacturing costs, and retail price. Microsoft probably felt it would make no sense to keep making it and charging $300 or under for it.
The Digital Edition never seemed to take off or make any sense. The pricing was all wrong. The consumer is only saving $50 while they lose the 4K Blu-ray Drive and they still only have 1 TB of storage. Sell it for $250 with a 2 TB internal HDD, or sell it for $200.
I misread this article at first, thinking the Xbox One as a whole was discontinued. That would be uncharted territory, since the Series X isn't even out yet. The Wii U is one of the only consoles I can think of that was discontinued before its successor released.



Lifetime Sales Predictions 

Switch: 151 million (was 73, then 96, then 113 million, then 125 million, then 144 million)

PS5: 115 million (was 105 million) Xbox Series S/X: 57 million (was 60 million, then 67 million)

PS4: 120 mil (was 100 then 130 million, then 122 million) Xbox One: 51 mil (was 50 then 55 mil)

3DS: 75.5 mil (was 73, then 77 million)

"Let go your earthly tether, enter the void, empty and become wind." - Guru Laghima