We! Are! VR!
According to CNET, Microsoft, for a time, considered developing a VR headset. Specifically, to compete with Sony’s PSVR headset. At the time, it was meant to be a traditional headset, and the screen they had was considered good. Not as good as the HTC Vive or Occulus Rift, but competitive.
But, at some point, development was halted. according to CNET’s Microsoft sources, the plan was put on hold to create something better. A true trailblazer; a device that was sleeker, better, possibly even wireless.
We may never know what could’ve been. Apparently, they had planned on a big VR push, stating that the Xbox One was VR ready, way back when. They even apparently reached out to developers to work on VR games. But who knows? Maybe a few years down the line, you might see your Xbox VR unit.