Virtual reality appears to be the next best thing in tech as companies like Microsoft, Apple and Facebook are starting to look into it. According to forecasts, Apple could push for its VR initiative further but Microsoft will be a wild card against these companies investing on the technology already.

Microsoft had a good run in 2015 and its looks like it will be among the top contenders for virtual reality in the next year. Daniel Ives of FBR & Co. said that Microsoft's "augmented reality” can kick into high gear as more companies develop their products around VR technology.

"The big buzz heading into CES 2016 is around ‘rolling out the red carpet’ for virtual reality products/headsets/software. After years of development, the tech world will be getting its first glimpse of the highly anticipated virtual reality systems set to hit the consumer market in 1H2016 with Oculus Rift, HTC Vive, and PlayStation VR all prepping to release their VR systems that could potentially change the VR landscape for years to come depending on initial consumer adoption," Barrons quoted Ives.

Ives sees Apple becoming very aggressive in this area by means of organic acquisitions in 2016. Apart from Microsoft and Facebook, other big players to watch out for include Google and GoPro.

"We view the biggest wild card in this market as Microsoft, with Nadella & Co. establishing Redmond as a clear leader on augmented/mixed reality as Hololens (developer kits-1H2016 release) has enormous growth potential on both the enterprise and consumer front in our opinion," he added on Microsoft becoming a wild card.

On top of its VR push, Microsoft also seems intent to try its luck once more in the smartphone market. Chris Capossela, Microsoft executive vice president and chief marketing officer, said that the company is working hard on accomplishing a "breakthrough" smartphone, Twit reports. The company has been doing well in its computer bid as Microsoft slowly becomes a contender for sales against Apple. Nonetheless, analysts argued previously that it has to concentrate on its computer line more as it seems like a lucrative segment than its smartphone line.

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