The head of Xbox Game Studios Matt Booty has said that the augmented and virtual reality market is too small to pursue.

Speaking to The Hollywood Reporter, the exec said that Microsoft games need to sell around ten million copies in order to be considered a success. Xbox's Booty said that its titles would need to reach that kind of scale to think about pursuing the AR and VR market.

"I think for us; it’s just a bit of wait until there’s an audience there," Booty said.

"We’re very fortunate that we have got these big IPs that have turned into ongoing franchises with big communities. We have 10 games that have achieved over 10 million players life-to-date, which is a pretty big accomplishment, but that’s the kind of scale that we need to see success for the game and it’s just, it’s not quite there yet with AR, VR."