Microsoft's dropped some more clues that it's warming to the idea of virtual reality.
"We've looked at that and we continue to look at that and we'll see what happens, he said.
"That's a hard problem to solve. You're using technology to trick the human brain to do things it's not supposed to do. That's why people get headaches. We have to find the right way to do it."
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Snap back to reality
Microsoft may have already found the answer in augmented reality rather than full-blown virtual reality: we recently reported that Microsoft is applying for more than 80 patents concerning augmented reality glasses.
There were also a few rumours of an Xbox VR headset doing the rounds after Sony unveiled its own Project Morpheus at this year's GDC.
Facebook may have just gobbled up Oculus Rift, but Microsoft is big enough to be able to throw some serious money into this developing area of gaming.