In January, Microsoft revealed HoloLens, an augmented reality headset that blends your digital life with the real world. The reveal video even showed off how it might be used to play Minecraft, which Microsoft acquired last year for $2.5 billion. It's a different type of technology with a different focus compared to the virtual reality headset we've seen from Oculus, Sony's Morpheus, and the recently revealed Vive from Valve and HTC. However, Head of Xbox Phil Spencer said that HoloLens doesn't prevent Microsoft from getting into virtual reality in the future.

"I don't think we've locked ourselves out [of virtual reality]," Spencer told Eurogamer in an interview. "We've looked at a mixed reality space that we could do with HoloLens and think about it as a unique set of features and technologies to enable, that doesn't preclude us from doing anything in the VR space either from a first-party or partnership perspective. I've used Morpheus, I've used Oculus, I'm going to see more of the demos here."

Spencer added that while there are a lot of interesting developments in VR right now, no one knows exactly what to do with it yet. "I don't think - and this isn't a shot at VR in any way - I don't think it's landed yet on what it is and how it's going to go to market, but the innovation work is amazing, and it's something the games industry has always done, whether it's AI or voice," Spence said. "The games industry is always a place for innovation."

Microsoft previously said that virtual reality technology such as Oculus Rift or Project Morpheus are "truly exciting," but they aren't direct competitors to Microsoft's new HoloLens technology.

For more on virtual reality, watch GameSpot discuss why it doesn't work yet on The Lobby below.