Xbox co-creator explains why VR still hasn’t taken off

Gaming industry pioneer offers candid analysis on virtual reality limitations
VR, Xbox
Photo credit: Shutterstock.com / AnnaStills

Xbox co-creator Seamus Blackley thinks virtual reality (VR) hasn’t taken off yet because the platform doesn’t have a “killer app”. This observation comes as the VR market continues to struggle despite years of technological advancement and industry investment.

The platform has been supported by the likes of Sony and their PlayStation VR headset, but Blackley – who co-created the original Xbox console – believes VR hasn’t won over mainstream consumers yet because it is missing a game or feature that has mass appeal. Despite multiple generations of VR hardware being released, consumer adoption remains relatively limited compared to traditional gaming platforms.


“We’ve seen VR and AR not really take off, and if you’re a big fan, I’m sorry, but it’s just the f****** fact. There is no killer app and nobody can put their finger on what a killer app could be,” he said speaking on the ‘VideoGamer Podcast’. The gaming industry has yet to produce a VR title with the cultural impact of franchises like Halo, The Last of Us, or Grand Theft Auto.

“Everybody has a different kind of personal fantasy and then, at least in my experience, when you are given the environment that you sort of fantasized about you’re like, ‘Ok’ and you just want to take the headset off, because it’s this hot, heavy thing. It’s weird and disappointing.” Current VR headsets continue to face criticism for their weight, comfort, and overall user experience during extended sessions.


Blackley added one of the major issues with VR is that it offers “too much freedom” to users, which undermines the developers’ need for narrative control when it comes to games. This fundamental tension between open exploration and directed storytelling presents a significant challenge for content creators.

“When you lower the structure so much for the player that they are in the headset and they look around everywhere, in principle as an elevator pitch that sounds great,” he explained. “In practice, when we want to be entertained, we want a storyteller to control the narrative and to entertain us.” This perspective highlights the disconnect between VR’s technical capabilities and the ways in which many players prefer to experience games.

Blackley’s comments come as major tech companies continue to invest heavily in virtual reality technology despite mixed consumer reception. Companies including Sony, Meta, and HTC have released multiple generations of hardware, yet mainstream adoption remains elusive.

The absence of a “killer app” has been a persistent challenge for VR since its commercial reintroduction. While some VR titles have received critical acclaim, they haven’t driven hardware adoption to the levels seen with traditional gaming platforms, where system-selling games often lead to significant sales spikes.

Hardware limitations continue to present significant barriers to VR adoption. Beyond the weight concerns Blackley mentioned, issues with motion sickness affect many users to varying degrees. Additionally, the high entry cost limits the potential user base, creating a challenging environment for developers.

Industry veterans have noted parallels between VR’s current state and the early days of other gaming technologies, suggesting that continued development may eventually lead to broader adoption. The evolution of VR continues as companies experiment with different approaches to both hardware and software.

Despite these challenges, VR technology continues to find success in specialized applications outside of entertainment, particularly in training, education, and therapeutic contexts. These practical applications demonstrate the technology’s potential value beyond gaming.

The gaming industry’s history is filled with technologies that required multiple iterations before achieving mass appeal. Motion controls, touch screens, and 3D graphics all faced adoption challenges before becoming mainstream. Whether VR will follow this pattern remains an open question among industry experts.

As technology continues to evolve, Blackley’s critique highlights the fundamental challenge for VR developers: creating experiences compelling enough to overcome the platform’s inherent limitations while delivering value that justifies the additional investment and potential discomfort for users.

The search for VR’s killer application continues as developers experiment with new gameplay mechanics, storytelling techniques, and social experiences designed specifically for virtual environments. Whether these efforts will eventually lead to the breakthrough Blackley describes remains one of the most significant questions facing the gaming industry today.

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