Xbox hardware is going nowhere. They'll still make a boatload from sales in the store and the 30%, and if they were to pull out of hardware they know that Apple would fill that gap so fast.
I think the rumours are overblown, but do think there's something to the rumours that either Day One on Game Pass is going to be rolled back for first party games, OR Call of Duty won't be there as they make too much money from selling it. When the Day One pledge was first made, there were five(?) studios. Don't think they ever envisaged having so many studios and not enough Game Pass growth to offset the reduction in sales.