No one expected Microsoft to suddenly become a serious player in VR, but with a little help from Meta, that’s exactly what just happened. This week, Microsoft and Meta launched the $399 Xbox Edition of the Meta Quest 3S, marking a new chapter in cloud gaming and virtual reality. The headset isn’t some next-gen leap forward, but it does offer something fresh: the ability to stream Xbox games directly in VR, without a console or TV. The bundle includes Meta’s new Quest 3S, an Xbox controller, and a stylish black-and-green Xbox-themed head strap.
Here’s what it does: it turns Xbox Cloud Gaming into a massive, floating screen inside a VR headset. Gamers can sit on a couch or in bed and play titles like Forza Horizon 5, Halo Infinite, or Starfield as if they’re being projected on a 100-inch display. It works, not perfectly, and not without some hiccups, but well enough that it’s gaining serious attention. Compared to most VR setups that demand expensive hardware or tangled wires, this feels refreshingly simple, and more importantly, affordable.
Microsoft has long been the odd one out in the VR race. While Sony pushed forward with PlayStation VR2 and Meta dominated the standalone headset market, Microsoft stayed mostly silent after shelving its own VR ambitions. But this collaboration with Meta flips the narrative. Instead of building its own headset from scratch, Microsoft is leveraging Meta’s VR hardware and dropping Xbox into the mix, a move that sidesteps risk while expanding its Game Pass ecosystem into new territory.
This isn’t just a flashy bundle. It’s a strategic test run. By packaging cloud gaming into a comfortable, all-in-one VR system, Microsoft is hinting at how it sees the future of gaming: platform-agnostic, cloud-powered, and deeply personal. Additionally, by keeping the price under $400, it’s opening the door for younger players, students, and international markets where full console setups aren’t practical.
Think of it like turning any room into a mini arcade. No need for a massive TV, no physical disc collection, no overheating hardware. Just a headset, a controller, and access to hundreds of games. For now, it’s a niche experience. But it’s a powerful one, and it’s only going to get better as streaming quality improves and cloud services expand.
Microsoft just entered the VR conversation without making much noise, but the implications are loud and clear. If this approach takes off, it could reshape how and where people play. It’s not about competing with Meta or Sony in traditional VR; it’s about rewriting the rules entirely.
Microsoft and Meta announced an Xbox-branded Quest VR headset last year, and it’s going on sale today for $399.99. The Meta Quest 3S Xbox Edition is a custom colorway VR headset.