Microsoft, the gaming company, has teamed up with one of esports’ most prestigious and powerful players, Riot Games.
The deal, announced in a statement on Thursday, is expected to be worth $1.3 billion over the next five years.
The deal includes “over half a billion dollars in new revenue and $1 billion in annual value,” Microsoft said.
Microsoft and Riot Games will collaborate to develop a new product for esports.
It will be called the VR headset, and will be made by Oculus VR.
The headset will have a price tag of $799.
It has not been confirmed yet what form the headset will take.
Microsoft’s partnership with Riot will be a game changer for esports, as it will allow for “a deeper understanding of the dynamics of esports by leveraging the expertise of a gaming industry leader,” the statement said.
The move by Microsoft to partner with Riot comes after Oculus VR said in a recent earnings call that it was “excited to work with Microsoft to build the next generation of VR experiences.”
Riot has previously worked with other gaming companies, including Epic Games and Valve, and its partnership with Microsoft will be the latest of its kind.
Microsoft has also partnered with Riot in the past, including with Oculus Rift.