As E3 speculation for the Xbox One doesn't seem to stop, a major developer has confirmed that a new virtual reality video game from Microsoft is currently in the works and is set for an unveiling at this year's event.

The developer, from a European studio, provided the information to Ars Technica as part of pre-E3, saying that the Xbox One VR title is planned for a 2017 launch and will be involved in an "established, long-running franchise." However, the exact name of the game or the specific developer was not revealed.

A PR representative who confirmed the information noted that the game will receive a demo on PC or the PlayStation 4 console at this year's E3, adding that the game will also be made for the Xbox One.

The Xbox One VR game's release would provide Microsoft, which currently doesn't have a VR-compatible headset or a flagship console with VR capabilities, an opportunity to step up to Sony, which plans on releasing the PlayStation VR in October.

However, Microsoft has gotten involved in the technology before, having previously worked with Oculus to release a wireless Xbox One controller with the first Rift VR headset in a limited launch back in March.

The developer's confirmation also follows three years after Oculus co-founder Palmer Luckey said that the current consoles are "too limited for what we want to do" with the Oculus Rift. "The problem with consoles in general is that once they come out they're locked to a certain spec for a long, long time," he said at the time, adding that PCs had gone through a great evolution over the years. "I think the jump we're going to see in the next four or five years is going to be massive, and already VR is a very intensive thing, it requires rendering at high resolutions at over 60 frames a second in 3D."

The new information provided to Ars follows only days after rumors surfaced that Microsoft plans release two new versions of the Xbox One, with one being a smaller version that would debut at E3 this year and a more powerful version that would debut in 2017. The developer's confirmation presents the possibility that the more powerful Xbox One may have VR capabilities.

Gamers will have the opportunity to find out if any of this information is true at E3, which is scheduled for June 13 at 9:30 a.m. PT (12:30 p.m. ET).