Yesterday at Gamescom in Germany, Microsoft's head of Xbox games marketing told Engadget that the next Xbox—codenamed Project Scorpio and slated for a Holiday 2017 release—is likely to be the last console they ever make.
It sounds a bit odd (x-ing the actual box out of the Xbox equation), especially since the sleek, slim One S just hit shelves earlier this month. But it makes sense.
First off, Microsoft predominantly has been and continues to be a dedicated software company. Aside from Xbox itself and their recent Surface hybrid computer line, it's hard to recall a hardware endeavor of theirs that hasn't turned into an epic flop. So focusing on building out their game library and loyal community seems sound.
Second, according to the specs we've seen, it quite literally will be the Xbox to end all. With backwards game and accessory compatibility to previous Xbox iterations, Scorpio promises to be the fastest and most powerful console ever made.
Similar to Sony's move with PlayStation Neo, it's not meant as a replacement to the current console generation, but a tricked-out enhancement that tees up the future of VR (which Microsoft sees in their HoloLens platform).
So it appears Microsoft's going to stick with their core competency, rather than try to chase Sony in the hardware selling game in the future. But the Xbox platform on the whole appears to be healthy and shows no signs of slowing down or going away, if it's any (ahem) console-ation.