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Why Xbox scraped its VR plans?

Phil Spencer, head of Xbox clarified in an interview on Controversial Virtual Reality comments by saying that Xbox is not interested in Virtual Reality at least for now. He said, it was too niche and customers are not demanding for it. Therefore the team of Xbox is not focusing on the VR and they have no interest in exploring right now. He further said that they will reveal if Xbox will consider making a Virtual Reality play. And they are completely focusing on the things they are doing right now. He further added that he was probably overstated on the podcast Gamertag Radio. He said there is no disrespect to anyone from the team and people who like VR and its experiences that are being built. His main point was to be clear with the consumers to know where their focus was. He said, if somebody was waiting for headset for Series X to bring out for them at launch then they are not going to do that. He further explained that bringing Virtual Reality to console platform is not simple as it seems like just plugging a headset in. Specialized console UI could be custom-fitted for a VR interface. For now, their most important resource is their team and their ability so they are focusing on things they are doing.

Phil Spencer also clarified that Virtual reality is nearly linked with Windows. Microsoft, on its console platform had seemed uncertain about adoption of VR. Initially company said Xbox One X was VR ready but VR support was never materialized. Company has not specified when it would be used for gaming applications.

Therefore, Company is focusing on the movements of the industry and development towards VR acceptance. That provoked him to say that Amazon and Google are its main competition rather than other traditional console competitors such as Sony and Nintendo. Therefore Spencer seems to be focusing on Xbox Series X for now.