Spong claims that retailers will be pulling the Xbox over the coming months, making room for the arrival of the Xbox 2 - expected sometime around Christmas 2005.
However Larry Hryb (Director of Programming for Xbox Live) has hit back at Spong and denied the claims via Major Nelson (his personal blog):

There are a few stories floating around this vast thing we call the Internet today that say the Xbox has been pulled from retailers. Furthermore, people are saying that we have “reached our targets and want to get ready for the next console.” Let me be perfectly clear: We are NOT pulling the Xbox from stores. Xbox consoles being in short supply since they are popular and stopping production are two VERY different issues. Don’t believe the mis-information that is filling your browser/inbox/rss feed.