“Microsoft has been rumoured to be developing a new console for release in late 2017. Codenamed Scorpio, the console is expected to have more than enough processing power to handle VR gaming.”

Google Inc. OEM Sony Corp VR gaming Windows Holographic

Until now, Microsoft has been seen as reluctant to become involved too deeply in the VR market in its nascent stage. So far the company has been minimally involved in this space, having struck one agreement to ship Xbox One controllers with Oculus’ Rift headset, and releasing a VR version of the video game Minecraft.

Microsoft has been much more interested in the AR side of things. It began shipping its AR headset, the HoloLens, to software developers in March at a price of $3,000. If and when HoloLens is released to the public, given its high price point and Microsoft’s focus on business applications for the device, it is seemingly being targeted at business users and not the average consumer.

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