Microsoft believes the metaverse is coming, and that mixed reality and virtual reality will play a part in getting there, but the Xbox company isn't preparing to get involved in making VR hardware like competitor Sony does with PlayStation VR or Oculus or Valve. Microsoft is instead focused on producing software.

Speaking at a WSJ Tech Live event this week, as reported by VGC, Xbox boss Phil Spencer said Microsoft believes new levels of immersion in experiences can be achieved through things like mixed reality, virtual reality, or even the metaverse. But Microsoft doesn't plan to make any hardware or devices itself, instead opting to focus on the software.

"We're focused a lot more on the software side of that right now. When I think about immersive worlds and I think about the connection of a player and community, that's something that's very high on our investment list," Spencer said.