Microsoft is rumored to be planning to mass produce a head-worn virtual gaming device in 2015 and is expected to showcase the product at the E3 gaming show in June.

According to DigiTimes, sources from the upstream supply chain sources revealed that the gaming device's development is handled by Microsoft's hardware team, which is also the one in charge of Surface tablet development.

Sony in March unveiled its head-worn gaming device Project Morpheus, which is able to connect with the company's PlayStation 4, but so far the device is still not yet available in the market.

Facebook with its acquired Oculus VR is also planning to launch a head-worn product, the Oculus Rift in 2015. Since Microsoft is a latecomer in the head-worn product market, the company may face serious competition if it is unable to deliver unique features for its products, the sources noted.

The sources, according to DigiTimes, also believe head-worn products will become a new focus of the gaming hardware developers for the next-generation gaming devices.

Microsoft also has a Kinect sensor-ready Google Glass-similar wearable device, the Fortaleza project, in development, but the company has not yet unveiled details for the product.