Well, it's pretty obvious MS is going down the route of GAAS. Their current CEO is a big believer in online services being the future, not so much in dedicated HW. They've also moved all of their games to PC, so HW definitely isn't the most important thing to them. GamePass and xCloud is.
Still, it depends on how well the Series X does. If they can continue selling 40M-60M, while making a profit on HW, they may stay in the HW business. However, if they have to lose money to hit those numbers, or worse, they sell 30M or less, they will be done with HW. Maybe they'll make a dedicated xCloud box. But, they'll not be making something that costs so much to R&D, manufacture, and advertise if that's what the return will be.