Xbox boss Phil Spencer says VR isn't a focus for Project Scarlett.
Microsoft's gaming chief has insisted Xbox users simply don't care enough for the technological development, and he admitted he has "some issues" with the platform too which mean it won't be represented on the next generation console.
Speaking to Stevivor, he said: "I have some issues with VR. It's isolating and I think of games as a communal, kind of together experience.
"We're responding to what our customers are asking for and... nobody's asking for VR.
"The vast majority of our customers know if they want a VR experience, there's places to go get those. We see the volumters of those on PC and other places."
Microsoft's console Rival Sony has release its own VR headset and exclusive titles, and PSVR had sold more than 4.2 million unsits as of March 2019.
However, Spencer suggested there isn't much money to actually be made from the technology at the moment, while he admitted he's still open to the idea one day if the situation changes.
He added: "Nobody's selling millions and miillions [of VR units]... I think we might get there [eventually]. But yeah, that's not where our focus is."