Microsoft already closed MSN TV and various Microsoft Game Studios (Aces Studio, Carbonated Games, Digital Anvil, Ensemble Studios, FASA Studio, Hired Gun). (https://en.wikipedia.org/wiki/MSN_TV , https://en.wikipedia.org/wiki/Template:Microsoft_Studios )
At this year's E3 game industry trade show, the Kinect2 sensor was not even mentioned. So some newspapers speculated that the Kinect2 is dead. (e.g. http://www.heise.de/newsticker/meldung/E3-Microsoft-begraebt... (German))
But Kinect, as technology, has huge potential in the robotics and connected home spaces.
Also, if they can cram it into Windows Phone, they could easily out-pace Google's Tango to consumer-facing apps and products that really differentiate their mobile devices.
If they're serious about 3d printing support, it would be incredibly powerful to have a device that can create a source model just from waving your phone around a thing to be replicated.
Waggle is a really bad way to input button presses, which is all it was ever used for. It won't be missed.