Last week we reported that FOVE, creator of the world's first head-mounted eye-tracking display, had been accepted into Microsoft's Ventures London programme - igniting speculation that Microsoft was sniffing around some new gaming VR tech.

Now a source from the company has confirmed to TechRadar that Microsoft has explicitly expressed interest in using the FOVE technology with Xbox, and will be offering development kits for the startup to use.

Whether this will result in the Xbox One virtual reality headset looking like FOVE is impossible to tell right now, but Microsoft has already mentioned to FOVE that it's thinking about how the technology may work with its console.

The source also told us that FOVE is hoping to form some form of partnership with Microsoft on Xbox One, should Microsoft choose to pursue it. FOVE will be moving to London for a few months while it partakes in the accelerator program, during which time it should know for certain what benefits Microsoft hopes to gain.

It's all in the eyes

Microsoft has several different accelerator programmes around the world, with London's most strongly linked to the gaming scene.

With Oculus Rift and Sony's Project Morpheus making their way to market, Microsoft certainly won't want to be left out, so it. This new information chimes with that from another source, who informed TechRadar that Microsoft's VR plans are still well behind Oculus Rift.

But with the possibility of making the technology work with Kinect - and now potentially with eye-tracking tech too - Microsoft could build a truly compelling device.

We've approached Microsoft for comment and will update if we get a response.