According to a report in The Wall Street Journal (and via CVG), Microsoft are exploring virtual reality and have created devices alongside augmented reality technology, with the platform holder said to be seeking out new experiences for Xbox.
Sources said to be familiar with Microsoft's plans and close to The Wall Street Journal told the newspaper that the tech has already been developed, though they didn't go into any specifics.
A leaked document from way back in 2012 outlined that Microsoft were interested in AR technology, and the company patented a head-mounted display device last year. Hardly conclusive proof of VR, but still interesting nonetheless, especially when you consider interest in tech following Oculus Rift's successful Kickstarter campaign.
It's widely thought that Sony are to show off VR tech at this years GDC, with an announcement anticipated later on today. Stay tuned and we'll keep you updated with any news in that direction.