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Outer Heaven is both the concept of Big Boss's vision (which is based on his interpretation of his former mentor The Boss's will which said soldiers shouldn't be treated like tools) and a private military company named after the idea. Outer Heaven is the main antagonist of Metal Gear and was believed to be presided by it's forger, Big Boss.
According to Metal Gear Solid: Portable Ops, in 1970, during Naked Snake's battle with Gene, he found that he wished to create Army's Heaven, which was his exploitative concept for a nation of soldiers. Snake dismissed this "Gene's heaven", and would be given Army's Heaven's resources to be used later, knowing he was a worthy successor. As part of the Patriots, Snake wanted to create a better place for soldiers, but after he and Major Zero fell out, Snake abandoned them, and formed Militaires Sans Frontières. After MSF's growth into becoming a nuclear power during the events of Peace Walker, Big Boss believed that MSF was becoming his personal "Outer Heaven": a soldier's paradise. However, it would be destroyed by XOF during the events of Ground Zeroes.
Diamond Dogs, and the true Outer Heaven
With Big Boss left in a coma as a result of the attack, Kazuhira Miller formed Diamond Dogs from the remnants of MSF in the early 1980's. In 1984, Venom Snake, a body double of the real Big Boss brainwashed into thinking he was the real thing, took command of Diamond Dogs, and expanded it into a full-on mercenary force. While Diamond Dogs battled XOF, the real Big Boss began establishing his true vision of Outer Heaven in South Africa, using Venom's actions to expand his legend. At some point, Diamond Dogs was presumably absorbed into Outer Heaven.
In the 1980s, Big Boss founded Outer Heaven as a nation in a large fortress stationed in South Africa. Said fortress was designed and built by the architect Kyle Schneider who later formed a revolution against the nation when his wife and child died. While Big Boss was supposedly the commander of Outer Heaven, he in fact used his body double, or "phantom", Venom Snake as the nation's leader, while he led FOXHOUND in the US, playing both sides. "Big Boss" also had his nation build the TX-55 Metal Gear to act as their ultimate weapon.
When the West noticed the tyrannical nation, they sent the rookie FOXHOUND operative Solid Snake to inspect it and rescue another FOXHOUND agent Gray Fox who was kidnapped by Outer Heaven and made a prisoner of war. Big Boss sent Solid Snake on said mission in hopes that he would fail, as he was only a rookie and he had an army of mercenaries sent to assassinate him. However, Big Boss was incorrect as Snake killed all of the mercenaries, saved Gray Fox, and destroyed Metal Gear.
Left with no other choice, the fortress was set to self destruct, and Venom Snake confronted Snake in person, playing the role of Big Boss, hoping to ensure that Snake died with him. After an intense battle, Venom was killed by the rookie who escaped the facility just before detonation. Shortly afterwards, NATO launched an air raid to wipe out any remaining Outer Heaven facilities, indifferent to the resulting deaths of those in the area (since the war orphans and refugees were considered a liability). The real Big Boss managed to save many of those in the Outer Heaven area, including the surviving fortress personnel; mercenaries; and even Resistance members.
While using the death of his phantom to fake his death, Big Boss recreated Outer Heaven in the form of Zanzibar Land, which was defeated four years later by Solid Snake, who seemingly killed Big Boss. While this seemed to mark the end of Outer Heaven, many others wished to continue big Boss's legacy, such as his son Liquid Snake. He took over Shadow Moses Island, unofficially christening it Outer Heaven, but was defeated by his brother Solid Snake. Big Boss's other son Solidus Snake named his plan to destroy the Patriots Outer Heaven, which would bring the philosophy to the entire country, but he was killed by Raiden thanks to the Patriot's manipulations. Liquid Ocelot finally formed a new Outer Heaven as a mother company for his PMC armies, and planned to destroy the Patriots and leave society in a state of lawless order and chaos. While the latter part of the plan was never realised, Ocelot believed that Big Boss's dream had been accomplished.