This week, Microsoft’s HoloLens took another major hit, potentially securing the end of the mixed-reality headset in the future.
Following widespread device discontinuation reports and a roadmap of finality regarding its HoloLens technical support, Microsoft lost its last major lifeline with the loss of the US Military IVAS contract worth a reported $22 billion.
While the HoloLens saw enterprise usage across its lifespan, the firm’s IVAS contract kept the device afloat in the previous few years as the marketplace matured and developed, with more vendors selling devices with similar functionality.
However, and interestingly, the recent loss of the IVAS has seen Microsoft’s HoloLens division replaced by Palmer Luckey’s start-up, Anduril, a firm focusing on defence technology.
Keen eyes will remember Palmer Luckey as the person who founded Oculus, the virtual reality start-up that Mark Zuckerberg acquired and eventually transitioned into the Meta and Reality Labs umbrella following Luckey’s departure.
Anduril is taking over developing and producing a mixed-reality device, following Microsoft’s work with the HoloLens-powered IVAS.
Microsoft’s IVAS was not without its problems, through years of trail and error feedback came back negativey repeatedly; hwoever the prospects of a MR device for on-field defence perpurses is to appealing for the US military to drop entirly.
But since Microsoft’s slow decline in support for HoloLens, which can be traced back to Alex Kipman’s distancing in years past, led to the more recent discontinuation of HoloLens, replacing HoloLens from the US Army contract makes sense as a more secure hardware partner is most likely crucial for IVAS success.
While the prospect of Anduril joining the IVAS development cycle seems secure, the US Army notes that final agreements are still being worked out.
Microsoft is not absent from the project. Notably, Microsoft Azure will remain attached to the IVAS project, giving cloud computing support for IVAS MR and AI technologies, in part proving Microsoft’s place as a backend framework provider for the emerging XR market, a strong position.
As part of the Anduril IVAS deal, the firm notes aligned partnerships with OpenAI and Palantir to integrate AI training features into the project. Moreover, reports suggest that the IVAS contract could reach $28 billion in the future, a valuable asset for the Oculus founder.
Microsoft Receives Final Updates
Following its official announcement about the last chance to purchase, Microsoft has launched the final major feature update for HoloLens 2 ahead of its discontinuation in December. The device will continue to receive minor security and stability updates until 2027. However, this most recent update represents the last significant change, fundamentally altering the framework of the HoloLens 2.
The latest update introduces new system text size settings, allowing users to adjust the size of the Start Menu UI with the option to scale text up to 200%. Users can skip the eye calibration setup during first-time activation, simplifying the initial setup process.
Two new applications have also been added to the headset. First, WinGet integration enables users to download Microsoft Store apps after the storefront’s retirement. Second, integrating the OneDrive PWA application gives users an improved cloud-sharing tool.
Along with these significant updates, the release includes various bug fixes and security updates, reinforcing Microsoft’s commitment to keeping the device secure for businesses following the last purchase opportunity.
As part of the last-time-to-buy initiative, Microsoft will sell the remaining HoloLens 2 units on a first-come, first-served basis. These units will only be available directly from Microsoft or through official resellers. Warranty and customer/developer support will remain unchanged despite this announcement.
Although this news may seem like the end for HoloLens 2, Microsoft will continue to support the device through security and major functionality updates until December 31, 2027, including this latest update.
In conjunction with the last-time-to-buy announcement, Microsoft informed its HoloLens/Mixed Reality Partner community that the first-generation HoloLens headset will receive its final update on December 10, 2024. This follows a multi-year, Long-Term Servicing state for the legacy device that began in 2021. After the final update on December 10, 2024, HoloLens 1 devices will no longer receive security or software support.
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