It doesn't work both ways because we already know they're releasing a console as normal as it's their bread and butter, and we also know the streaming blades are made of Xbox One S internals.
So this could very well be the reality, it trims the fat. It makes Xbox the flagship as they state it to be in their very xCloud reveal while still being able to deliver games elsewhere (PC included) without increasing iteration time i.e. porting game code and requiring native operation on PC which results in lost time, energy, resources and money. With PC out of the development pipeline iter