Microsoft's Xbox division and Meta have introduced the VR Meta Quest 3S Xbox Edition headset

Microsoft's Xbox division, in collaboration with Meta, has unveiled a new virtual reality headset known as the Meta Quest 3S Xbox Edition. This release is highlighted by Xbox's Corporate VP of partnerships and marketing, Lori Wright, who characterized it as a "limited edition" that underscores an ongoing collaboration intended to enhance Xbox Cloud Gaming on Meta's VR devices.

Lori Wright emphasized Xbox's initiative to broaden the reach of cloud gaming, making it accessible to more users worldwide. She remarked that with features such as the Xbox app on Quest, their aim is to enable gaming experiences anywhere at any time. The Meta Quest 3S Xbox Edition aspires to embody Xbox's iconic look and feel within a newly designed headset.

Sold at $400 (£380), this special edition package includes not only the VR headset but also matching Touch Plus controllers, a unique wireless controller, a Meta Quest Elite strap, and a three-month subscription to both Meta Horizon+ and Xbox Game Pass Ultimate. Notably, the headset supports Bluetooth connectivity for linking any Xbox wireless or adaptive controller.

Lori Wright expressed enthusiasm for the collaboration with Meta, stating that this development unlocks new potential in VR gaming and entertainment, and anticipates what future innovations this partnership may bring.

This launch coincides with reports suggesting that Microsoft might initiate substantial layoffs within its Xbox workforce in the following week. This potential development continues a pattern of reductions over recent years, including a 3% cut in employees in May 2025, further layoffs earlier in January 2025, and an earlier reduction impacting 650 staff in September 2024. Four Bethesda studios were also shuttered in May 2024, redistributing some personnel to other areas. Additionally, January 2024 saw 1,900 positions eliminated from the games division.

Despite these workforce changes, Microsoft recently reported a 5% annual revenue increase in its gaming segment in its Q3 2025 financial outcomes.