Xbox VR: Market still too small for Microsoft

According to Matt Booty, the head of Xbox Game Studios, the virtual reality market remains too small to be commercially successful at this point.

As such, Xbox Game Studios has no plans to release VR games or a VR headset for the Xbox Series X in the near future. Booty stated that for a VR game to be worth Microsoft's investment, it would need to reach around ten million plays.

Currently, Xbox remains more of an interested VR spectator, with Xbox CEO Phil Spencer praising Sony, Meta, and Valve for their developments in virtual reality in 2021.

However, Xbox prefers to focus on software rather than hardware and is currently experimenting with niche cloud gaming instead of VR.

Booty described cloud gaming as a very small market that Microsoft considers more experimental at this point. Nevertheless, at Meta Connect 2022, Microsoft CEO Satya Nadella announced plans to bring Xbox Cloud Gaming to the Quest platform, though no launch date has been set yet.

Sources: The Hollywood Reporter