Xbox has announced a new VR headset designed in collaboration with Meta – the Meta Quest 3S Xbox Edition.

Corporate VP of Xbox partnerships and marketing, Lori Wright, said it would be a “limited edition release” as part of an “ongoing partnership” that “celebrates the expansion of Xbox Cloud Gaming (Beta) on Meta Quest headsets.”

“Over the past several years, Xbox has expanded the Xbox cloud gaming experience to more places and more players,” Wright said. “Since the announcement of the Xbox app on Quest, our goal has been to empower more people to play their favorite games whenever and wherever they want.

“Today, with the Meta Quest 3S Xbox Edition, we are bringing this vision to life with a new design that celebrates Xbox’s iconic aesthetic.”

The Meta Quest 3S Xbox Edition bundle is available now for $400 (£380) and comes with the headset, matching Touch Plus controllers and a limited-edition wireless controller, a Meta Quest Elite strap, as well as three months of Meta Horizon+ and Xbox Game Pass Ultimate. However, Xbox reports you can pair any Xbox wireless controller or adaptive controller to the headset via Bluetooth.

“We’re proud of what we’ve built together with Meta, and we can’t wait for you to dive into everything the Meta Quest 3S Xbox Edition has to offer,” Wright concluded. “Whether you’re streaming the latest Xbox Game Pass Ultimate titles, exploring the ever-expanding world of VR, or kicking back with immersive entertainment, this is just the beginning of what’s possible when great teams and great technology come together.”

The reveal comes on the same day we reported that Microsoft is allegedly planning a “major” round of layoffs at Xbox next week. If true, this follows a round of Microsoft layoffs in May 2025, where 3% of the company’s headcount was targeted, on top of a smaller round of layoffs before that in January 2025. 650 staff were similarly cut from its games division in September 2024. In May 2024, four studios under subsidiary Bethesda were closed, with some staff “realigned” to other teams. There were also 1900 roles cut in January 2024.

During its recent Q3 2025 results, Microsoft shared that its gaming segment increased revenue 5% year-on-year.