Microsoft Discontinues HoloLens 2, Shifts Mixed-Reality Strategy

[AleksandarK]

Microsoft has officially ended production of its HoloLens 2 mixed-reality headset, according to sources confirmed by The Register. The tech giant recently notified its partners that the HoloLens 2, introduced in 2019 as an enterprise-focused augmented reality device, is no longer available for purchase. This marks a significant shift in Microsoft's AR strategy, with the company stating, "Support for HoloLens 2, including security updates, will end on December 31, 2027." Despite aggressive marketing efforts, the HoloLens 2 struggled to gain widespread adoption, reflecting broader challenges in the AR/VR market where high-end headsets like HoloLens 2 and Apple Vision Pro retail for around $3,500, limiting their appeal. Some Microsoft employees reportedly expressed surprise that the project continued as long as it did, suggesting internal doubts about its viability.

Rather than continuing as a hardware provider, Microsoft plans to pivot its role in the mixed reality space, focusing on "first-party software solutions and services, partnering with the broader mobile phone and mixed reality hardware ecosystem." This decision aligns with the current state of the AR/VR industry, where the ecosystem is still in its early stages, and companies like Meta are heavily investing in its development. Microsoft's shift from hardware production to ecosystem investment mirrors trends in the broader tech industry and could position the company for future opportunities as the mixed-reality market matures. As the ecosystem develops and more use cases emerge, Microsoft's investment in software and services could prove valuable despite the current challenges in justifying investments in a field that's still searching for compelling widespread applications.



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[R-T-B]

Ah yes, that thing they kept talking about but no one bought. How could this happen?

 

[Vayra86]

I'll say it again... no matter who you are or where you are, you will look like a blundering fool with a chunky headset on your face. You're not socially engaged, you're in a bubble. This is pure death for any 'demo' environment or other real life event. It works for 30 minutes, maximum, and requires undivided attention during that time.

And those real life event demos are exactly the only space where these devices realistically have any added value. Even porn is better without VR.

It was DOA and will remain so

 

[Octavean]

Microsoft has some serious commitment issues,…

The loss of Microsoft Media Center still stings a bit

 

[NoneRain]

Ah yes, that thing they kept talking about but no one bought. How could this happen?

I think they had at least one contract of half a billion with the military, other than that idk

 

[Chomiq]

Ha, I wonder what our experts from marketing will say about that, as we continue to offer products that utilize HoloLens for AR functionality.

Ah yes, that thing they kept talking about but no one bought. How could this happen?

From consumer standpoint it wasn't a popular device but they still sold some to enterprise users.

We're currently running a project for a small lab (10 lab technicians max) and they have ordered a set of HoloLens. I guess we need to hurry up with ordering them from Microsoft.

 

[Eternit]

They should discontinue AI.

Ha, I wonder what our experts from marketing will say about that, as we continue to offer products that utilize HoloLens for AR functionality.


From consumer standpoint it wasn't a popular device but they still sold some to enterprise users.

We're currently running a project for a small lab (10 lab technicians max) and they have ordered a set of HoloLens. I guess we need to hurry up with ordering them from Microsoft.

They used to have this great ad

but then they made Nadella CEO and they are doing the same.

 

[FreedomEclipse]

They should discontinue AI.


They used to have this great ad

but then they made Nadella CEO and they are doing the same.

I still miss the light hearted side of google.

 

[KLMR]

shifts

 

[Darmok N Jalad]

I suspect we’ll see more products hit the scrap heap as the R&D dollars shift to the next thing. We got Recall and Copilot working for us now.

 

[Bwaze]

I hope it bites them in the ass that they removed Windows Mixed Reality from newer Windows updates, thus breaking perfectly functioning HP Reverb G2 and other WMR VR devices...

 

[Chomiq]

I suspect we’ll see more products hit the scrap heap as the R&D dollars shift to the next thing. We got Recall and Copilot working for us now.

Rumors before this happened we're that they're going to partner with Samsung on making VR headset. Granted, that was few years ago.

 

[ToTTenTranz]

Ah yes, that thing they kept talking about but no one bought. How could this happen?

What the hell are you talking about?

The Hololens 2 is the only see-through headset out there with a functional SDK for spatial computing. It has no competition in the industrial space, and lots of companies and RTOs are developing new stuff for it even now.

I just hope Microsoft is leaving this because all their talent went to Apple, Samsung and Meta, and they know they can't compete.

We're currently running a project for a small lab (10 lab technicians max) and they have ordered a set of HoloLens. I guess we need to hurry up with ordering them from Microsoft.

We just ordered 2 of them, after I told the team this was about to happen.. I guess it's the problem with timed financial execution...

 

[R-T-B]

What the hell are you talking about?

Consumer space. And if its doing so well, why is it discontinued?

 

[trsttte]

They did sell a lot of them to the US military and reportedly troops hated them and found them unusable.

The marketing for how it could help in precision manufacturing was interesting but don't know how far it went in practice

 

[Scrizz]

Ah yes, that thing they kept talking about but no one bought. How could this happen?

Actually a good bit of enterprise customers bought them. My previous employer used them in their manufacturing facilities.

The marketing for how it could help in precision manufacturing was interesting but don't know how far it went in practice

My previous employer used them in their manufacturing facilities. It worked well for them.

 

[ToTTenTranz]

Consumer space. And if its doing so well, why is it discontinued?

Massive poaching from Apple, Meta and Samsung. Microsoft just let everyone leave due to bad management and terrible decisions.
They've actually been taking down features with each new software update, it's crazy.

And the biggest problem is that while no one else comes up with real alternatives, companies will still be buying the 5 year-old Hololens. I guess Magic Leap is now on the table again for some, but it's also a hard recommendation because of so many negative news they get.

 

[TechLurker]

It's worth noting that the contract with the US Military was said to remain active in other reports on this matter, so HoloLens will live on as a military project in their efforts to add AR to soldiers' helmets and continue shrinking and improving efficiencies and performance. I wonder if they'll rebrand it to MJOLNIR, after the suit of armor used in their Halo series, with a focus on combining AI and AR to assist soldiers.