Microsoft could enter the virtual reality space, but its waiting to see where the tech goes first, says head of Xbox Phil Spencer.

At last week's Game Developers Conference Valve unveiled the HTC Vive, Sony showcased Morpheus, and the Oculus Rift was on display, but there was no competing Microsoft product.

"I don't think we've locked ourselves out," Spencer told Eurogamer.

"We've looked at a mixed reality space that we could do with Hololens, and think about it as a unique set of features and technologies to enable. That doesn't preclude us from doing anything in the VR space either from a first-party or partnership perspective.”

Spencer said he had tried Morpheus and the Rift, and that all companies were discussing where the technology could go.

“I don't think – and this isn't a shot at VR in any way – I don't think it's landed yet on what it is and how it's going to go to market, but the innovation work is amazing,” he added.

“It's something the games industry has always done, whether it's AI or voice – the games industry is always a place for innovation."

Microsoft's HoloLens has been described as the first augmented reality holographic computing platform. It comes with a set of APIs that will enable developers to create holograms in the real world that are visible through a lens overlaying the user's normal vision.