The Xbox division overall still has yet to turn a profit. Originally the premise of Xbox was to create a box that everyone would have in their living room and be the center of all entertainment. That endeavor has officially failed, they have even admitted as much in the past. They didn't predict correctly where technology would go in that people want to use different devices and not necessarily sit in front of the TV in their living room. The 360 had a few years of profitability, however those profits still did not put Xbox in the black from the investments they made on the original system. This division has still not made profit, and before Nadella was appointed CEO most of the candidates were calling for the division to be scrapped. It doesn't really make business sense for the division to still be alive other than to nurture the brand and continue to have it live.
The Xbox One only happened because of the success 360 did have and the assumption that One would share that success and propel the division to finally profit. Now that Xbox One is clearly trailing the competition that won't happen and the division is further in the red.
I do think Xbox will continue, purely as a service: Xbox Live. Microsoft will continue to fund games. They have a few IP that are very profitable like Halo, Gears of War, and Forza. But I just don't see Xbox as a console continuing.