Microsoft teams up with Meta for a co-branded headset, signaling a new push into VR without building one from scratch.
Finally, there will be a new player in the world of virtual reality. After years of rumors and doubt, Microsoft now seems ready to jump into VR with a bold new partnership with Meta. A picture of the Meta Quest 3S Xbox Edition’s box art that got out shows what appears to be the tech giant’s first major attempt at consumer VR. The approach is both expected and unexpected.
Microsoft is not making its own separate VR headset. Instead, it is branding and bundling VR headsets, which is a smarter and more cost-effective move. The leaked box clearly shows the Meta Quest 3S with an “Xbox Edition” label. This suggests a co-branded headset that will likely help Xbox fans get into VR.
The leak states that the headset will cost $399, feature 128 GB of storage, and include a three-month Xbox Game Pass Ultimate subscription. This will enable users to stream games directly from the cloud to the headset. The launch is scheduled to take place on June 24, which is just a few days away.
The packaging has both the classic Xbox logo and the Meta logo on it, but it’s still not clear if the headset itself will have that famous green “X” on it. The leaked picture shows that the device still has the classic Meta Quest look, but it might have some Xbox-themed details. The software integration is where the partnership really shines, even if there isn’t much branding on the products themselves.
Microsoft has been quiet about VR for a long time. Xbox has been cautiously optimistic, while its competitors, such as Sony, have released the PSVR and PSVR2 to mixed reviews. The leaders of the company had a lot of doubts about VR’s ability to become popular with regular people and make money, and they weren’t wrong. Although technology has advanced significantly, VR remains a niche market, is still expensive, and lacks a “must-have” app that would make it more popular.
Microsoft’s point seemed to be proven by the PlayStation VR2. Even though it came out with better specs and more games than the original PSVR, it didn’t become as popular as that one. Reports indicate that sales were slow and support was waning after only a year.

Microsoft has leaned on strategic partnerships instead of going up against other companies directly. Game Pass, which is probably the easiest-to-use gaming subscription service out there, was already available as a cloud stream on the Meta Quest platform. This was the first step toward bringing Xbox games to VR without having to start from scratch.
The Meta Quest 3S Xbox Edition is the next step in that plan.
The leaked specs give us a good idea of what to expect until the official sheet comes out. This Meta Quest 3S Xbox Edition is likely to have the following:
- 128 GB of built-in storage
- Triple Xbox Game Pass for three months
- Work across brands, with a strong push for Xbox cloud streaming support
- A price tag of $399
- Leaks say the launch date is June 24, 2025.
The big question is whether it will come with any Xbox-exclusive content or UI features or if it’s just for branding and cloud gaming. Even if it’s the second option, Microsoft can discuss VR with the Xbox name without having to spend millions on new development.
This headset is more than just a co-branded item; it’s part of a bigger plan that Microsoft has been putting in place for the last year to build an Xbox ecosystem. Do you remember the ad campaign called “Everything is an Xbox”? Some people even made fun of the idea at the time, but it’s becoming clear that the company is moving on from consoles completely.
Xbox isn’t trying to sell more consoles because the cloud is already built into smart TVs, handhelds like the ASUS ROG Ally, partnerships with AMD, and now a VR headset partnership with Meta. It’s trying to be easy to use and work on all platforms. Microsoft wants your device to be able to play Xbox games if it has a screen and can connect to the internet.
The Meta Quest Xbox Edition is the newest sign of that vision, which is for there to be no difference between the console and the ecosystem.
