Microsoft's Xbox: Cautious Eye on XR Technology's Future

Politics, News Sept. 20, 2023, 6:04 a.m.

Leaked documents reveal Microsofts cautious approach to extended reality (XR) technology for Xbox, citing skepticism about its audience reach, while acknowledging it as a potential future opportunity.

In recently leaked documents pertaining to Microsoft's Xbox business strategy, it becomes evident that the company is cautiously eyeing extended reality (XR) technology, while maintaining a certain distance. Despite Microsoft's previous ventures into XR with HoloLens and the Windows Mixed Reality platform on PC, its prominent gaming division, Xbox, has conspicuously refrained from embracing this technology.

Over time, Xbox leadership has consistently expressed reservations about investing in XR, citing the perceived lack of a substantial user base. While Xbox's immediate future does not seem poised to incorporate XR, the leaked documents reveal that Microsoft is not dismissing it outright, considering it a potential opportunity.

These leaked documents came to light during an ongoing legal dispute between Microsoft and the Federal Trade Commission. They unveil a substantial portion of Microsoft's long-term vision for the Xbox brand, suggesting that the company remains cautious about XR but is keeping it on its radar.

In a 'Gaming Strategy Review' document dated mid-2022, Xbox identified "AR/VR" as one of the "opportunities" under consideration for the next generation of gaming. Simultaneously, the company highlighted other strategic areas such as cloud gaming and machine learning/artificial intelligence (ML & AI).

In a different section of the same document, Xbox listed Windows Mixed Reality, OpenXR, WebVR, and HoloLens among the platforms and services that could contribute to building the "next-gen platform for immersive apps and games." However, the context suggests that "immersive" might not exclusively refer to XR.

While Xbox acknowledges XR as a prospective opportunity, its tone remains predominantly skeptical about the technology's reach and appeal. In another section of the document comparing Xbox with competitors, Microsoft acknowledged Meta's substantial investments in XR but concluded that "virtual reality is a niche gaming experience at this time."

Another document, outlining Microsoft's long-term plans for Xbox through 2030, expressed the company's intent to expand its hardware offerings into new categories. Nevertheless, this extended roadmap does not include any specific mention of XR hardware.

It is crucial to remember that these leaked documents offer a snapshot of Xbox's perspective as of mid-2022. Business dynamics can swiftly evolve, and priorities may change. With the introduction of devices like the Apple Vision Pro since these documents surfaced, it is conceivable that Xbox is reevaluating the significance of XR within its future portfolio.