AP reports this as a “9 out of 10” on their rumor confidence scale and has received input from several reputable sources.
While muskie may be gone, this doesn’t mean a second-gen Pixel XL won’t be happening. It will, most likely, just have a different codename to it and probably will be larger.
Back in March, the folks over at Droid Life revealed that Google was working on another larger device codenamed “taimen.” Droid Life also confirmed that this device was larger than both muskie and “walleye” (the regular, second-gen Pixel).
Android Police states “[they’re] fairly confident that taimen is actually going to be the 2nd-generation Pixel XL, and that muskie was shelved for an unspecified reason in favor of the larger taimen.”
So to sum things up, Google will only be releasing two, not three, smartphones this year.
Source: Android Police