MSFT VR

Two months ago, Microsoft said it didn't have specific

plans to create an Xbox VR headset. What it didn't say

is that it had been working on a device, but put existing

VR plans on hold until better technology comes along.

Microsoft courted partners over the past couple years to

create games for a virtual reality headset designed to work

with the Xbox video game console, according to people

familiar with the matter. While the physical designs of the

device weren't widely known, the screen quality specifications

were considered good -- but not as good as those for

Facebook's rival Oculus Rift or HTC's Vive headsets, the

people said.

arlier this year, however, Microsoft started telling partners

it was putting its Xbox headset plans on hold. Two people

familiar with Microsoft's thinking said the company decided

to wait until promising new tech like wireless headsets were

more feasible. Today, high-end headsets like Sony's $299

PlayStation VR, Facebook's $399 Oculus Rift and and HTC's

$499 Vive rely on long and bulky wires plugged into their

respective devices in order to work. Wireless adapters

meanwhile, add about $300 in cost.

The move wasn't much of a surprise to partners and those

briefed on the device, considering Microsoft has largely stuck

to a supporting role during VR's recent renaissance, led by

Sony, HTC, Steam game store owner Valve and Facebook's

Oculus VR. And you could argue it's a smart strategy.