Facebook made no small announcement that they are betting big on augmented reality by buying Oculus VR for a humbling $2 billion. Now it appears that Microsoft, under the new leadership of CEO Satya Nadella, is also interested in developing in the head-mounted wearables space. The company has apparently purchased a patent portfolio of over 80 current, and over 75 in-process, patents from a group Osterhout Design Group. The group’s existing client base is principally in the US government sector, and their portfolio is comprised of mainly VR-focused technology. This should likely be the first step in many that we see towards Microsoft’s competitive offering against the Oculus Rift and Sony Project Morpheus.