According to The Hollywood Reporter, Matt Booty, head of Microsoft Game Studios, has stated that the company has no plans to enter the virtual reality (VR) and augmented reality (AR) markets because they are still in the early stages of development and the size of the market does not meet Microsoft’s criteria for gaming success.
According to Booty, for Microsoft games to be considered successful, they need to attract an audience of around 10 million players, something that VR and AR currently lack. He also noted how fortunate Microsoft is to have well-established intellectual properties (IPs) that can support ongoing franchises and huge communities.
Also read: Amazon VR/AR Headsets Could Come Sooner Than Expected
This view contrasts with the strategies of the likes of Sony and Meta (formerly Facebook). Sony launched the PlayStation VR2 in February and is said to have sold 600,000 units in six weeks, outselling its predecessor. Sony president Hiroki Totoki has expressed optimism that the PS VR2 will outsell its predecessor, which sold 5 million units by the end of 2019. Meta said earlier this year that its Quest VR headset had sold around 20 million units.
Phil Spencer, the CEO of Microsoft’s gaming division, sparked outrage in November 2019 with comments that some saw as dismissive of VR technology. He saw virtual reality as a more limited and “siloed” form of entertainment, which did not fit with his concept of gaming as a shared entertainment experience. He also stated that Xbox customers did not show a strong desire for VR. Spencer subsequently corrected his statements, noting that while he respects the gaming industry’s exploration of new areas, VR is not currently Xbox’s focus. He expressed optimism that VR would one day become so important that Microsoft would be forced to participate. The following year, however, Spencer confirmed that Xbox had no plans to produce VR devices.
