Following the loss of its multi-billion IVAS/HoloLens contract with the US military, Microsoft’s mixed reality division appears to be approaching the end of a bumpy ride.
Following last week’s IVAS news, The Verge detailed a comment from Microsoft Mixed Reality CVP Robin Seiler, confirming Microsoft’s stance on HoloLens and its mixed reality ambition.
Seiler noted that Microsoft is “transitioning away from hardware development but will continue to provide support for HoloLens2 hardware and software through 2027, as announced in October.”
This is merely confirming the report from months ago noting the Last-Time-to-buy period for HoloLens, the final opportunity to purchase the HoloLens 2.
During this announcement, Microsoft launched the last major feature update. While the HoloLens 2 will still receive minor security and stability updates until 2027, this latest update marks the final significant change to the device. It modifies the framework of the HoloLens 2 and introduces two new applications.
Support for the HoloLens device will continue in terms of security and significant functionality updates until December 31, 2027. However, the first-generation HoloLens will no longer receive security or software support.
HoloLens Loses IVAS Life Line
Speaking on the IVAS lifeline, Seiler added, “We remain committed to the IVAS program and will shift our focus to cloud and AI technologies, which will serve as the foundation for IVAS as a situational awareness platform.”
Microsoft has recently lost its HoloLens U.S. military contract for the Integrated Visual Augmentation System (IVAS), valued at approximately $22 billion. Palmer Luckey’s start-up, Anduril, is set to take over the responsibilities that Microsoft left behind, with Microsoft dropping XR hardware support and moving to backend support instead.
Palmer Luckey is well-known as the founder of Oculus, the virtual reality company that Mark Zuckerberg purchased. Following Luckey’s departure, Oculus became part of the Meta and Reality Labs umbrella.
Anduril will now be responsible for developing and producing a mixed-reality device to replace Microsoft’s work on the HoloLens-powered IVAS. Microsoft’s IVAS project faced numerous challenges over the years, with persistent negative feedback indicating significant issues. However, the potential advantages of a mixed-reality device for defence purposes remain too valuable for the U.S. military to abandon.
Microsoft’s gradual decline in support for the HoloLens, which can be traced back to Alex Kipman’s distancing from the project, ultimately led to its discontinuation. Therefore, it makes sense for the U.S. Army to seek a more reliable hardware partner to ensure the success of the IVAS program.
While it appears that Anduril’s involvement in the IVAS development cycle is likely, the U.S. Army has indicated that final agreements are still under negotiation.
