Xbox Stays Clear Of VR: Is the Market Too Small To Gamble On?

Matt Booty, head of Xbox Game Studios, expressed skepticism about the current viability of the virtual reality (VR) and augmented reality (AR) market.

While many tech companies are eager to establish their own VR headsets, Xbox has shown no interest in venturing into this space.

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In a recent interview with the Hollywood Reporter, Booty said the lack of a substantial audience is the primary reason behind Xbox's reluctance to invest in VR technology.

"I think for us, it’s just a bit of wait until there’s an audience there," Booty stated. "We’re very fortunate that we have got these big IPs that have turned into ongoing franchises with big communities."

Booty said that Microsoft Corp (NASDAQ: MSFT), Xbox's owner, considers games successful only if they attract approximately 10 million players. But he argued that achieving this scale in the VR/AR market is currently unrealistic.

"We have 10 games that have achieved over 10 million players life-to-date, which is a pretty big accomplishment, but that’s the kind of scale that we need to see success for the game and it’s just, it’s not quite there yet with AR, VR."

Given Xbox's standard for success, it becomes clear that the company is unlikely to venture into the VR market in the near future, despite the popularity of PlayStation's VR titles, including Horizon: Call of the Mountain and Astro Bot: Rescue Mission, none of them have managed to attract anywhere near 10 million players.

Recently, Apple Inc. (NASDAQ: AAPL) unveiled its newest VR/AR headset, the Apple Vision Pro. This device is specifically tailored for gamers and aims to enter the market alongside competing products like Meta Platforms, Inc.'s (NASDAQ: META) Quest headsets, Sony Group Corporation's (NYSE: SONY) PlayStation VR 2, Valve's Index and various other options.

Read Next: Is Apple's Vision Pro Headset Worth It? Top Tech Reviewer Gives Honest Review

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