Microsoft killed Xbox VR — and this latest PlayStation PSVR news shows they were probably right to have done so

When Microsoft announced the Xbox One X a few years ago, Xbox CEO Phil Spencer then said it would support VR headsets — a first for the ecosystem. Fast forward a short while, and those plans were totally shelved. Xbox has repeatedly said that it has no plans to chase VR in the future, either.

Microsoft has had a weird relationship with virtual reality and augmented reality. It was all CEO Satya Nadella seemed to talk about during the pandemic, "metaverse this," and "metaverse that." Again, fast forward a short while, and the big tech fad faded almost as fast as NFTs. Microsoft's much hyped AR headset, HoloLens, is now practically dead.

Still, there were two major players persisting, with what can only be described as mixed success. Meta, of Facebook fame, is actually building some kind of limited edition Meta Quest 3S in partnership with Xbox, to showcase Xbox Cloud Gaming on the platform. However, it has lost tens of billions chasing VR. That's B for Billion. Meta even rebranded its entire company around the "metaverse" fad, which will likely never yield profitability. To date, reports suggest Meta has lost $45 billion on VR so far, which can only be described as absurd.

Sony PlayStation, the other major player, has definitely not spent $45 billion on its headsets — which on paper are extremely good, and among the best and most comfortable on the market. However, this latest news emerging from one of VR's most popular games is a signal that PSVR might not be long for this world.

Beat Saber is one of the few VR gaming success stories the industry can point to. The musical VR rhythm block hack n' slash has made hundreds of millions of dollars since its launch according to the WSJ. It was acquired by Meta in 2019, and often comes bundled with Meta Quest headsets.

Despite the game's success, it seems that Beat Games is sunsetting support for Beat Saber on the PSVR range. As of June 2025, no new content will be added. Multiplayer will be closed a few months after, although the basic game will still be available to purchase.

The game's retirement on PSVR comes as a bit of a blow to the platform, and I couldn't help but wonder how much longer PSVR has left in a gaming industry that seems to have rejected VR almost entirely.

I recalled how disappointed a few Xbox fans were when Microsoft rescinded its promises to bring VR to the Xbox One X, but looking at the VR landscape today, I can't help but feel like it was the right call to make. Even Apple, with its legions of unquestioning customers, utterly rejected the Apple Vision Pro. If Apple and PlayStation couldn't figure out this paradigm, there's absolutely no reason to think Microsoft could have done.

VR and AR likely still has some role to play in the future. Smaller, more discrete headsets like the excellent XREAL glasses can give you a 1080p monitor anywhere you currently are. Some estimates suggest that the VR market will continue to grow as well, but whether or not immersive VR gaming is part of that profitability layer remains to be seen.

In my experience VR gaming is — today — simply far too uncomfortable, claustrophobic, and nauseating for huge sections of the addressable audience. Xbox was right to not bother chasing this one. Perhaps the Xbox Ally and PC gaming handheld market will fare better?