Why Microsoft Sees AR (Not VR) as a Big Opportunity

In 2017, Microsoft (NASDAQ: MSFT) entered the virtual reality (VR) industry with what it called "mixed reality" headsets made by ASUS, Lenovo, HP, Dell, and Samsung. The differentiation of these headsets from early Oculus and HTC Vive headsets was their inside-out tracking, meaning they didn't need external trackers to locate the headset, but they were still tethered to a computer. The concept was novel at the time, but operations were glitchy, and Facebook's (NASDAQ: FB) Oculus and HTC's Vive products were superior even at Microsoft's launch. 

Since then, Microsoft has done little to upgrade or support VR, leaving the business to flounder in the market. Today, only the Samsung headset is available on the Microsoft Store online. To end any speculation of a VR update, Xbox head Phil Spencer squashed the idea of VR for Xbox saying, "Nobody's asking for VR." Maybe nobody's asking for VR, but Microsoft is investing in related augmented reality (AR) technology that customers are definitely asking for. 

Using an AR headset. Image source: Getty Images.

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Source Fool.com