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.

TrendForce's latest report reveals that shipments of near-eye displays are expected to increase year-by-year over the next few years following inventory clearance. It is anticipated that OLEDoS will dominate the high-end VR/MR market, with its technological share rising to 23% by 2030, while LCD will continue to occupy the mainstream market, holding a 63% share in near-eye displays.

TrendForce defines VR/MR devices as near-eye displays that achieve an immersive experience through a single display. Devices emphasizing transparency and the integration of virtual and real-world applications are classified as AR devices.

To accelerate humanoid development on a global scale, NVIDIA today announced it is providing the world's leading robot manufacturers, AI model developers and software makers with a suite of services, models and computing platforms to develop, train and build the next generation of humanoid robotics.

Among the offerings are new NVIDIA NIM microservices and frameworks for robot simulation and learning, the NVIDIA OSMO orchestration service for running multi-stage robotics workloads, and an AI- and simulation-enabled teleoperation workflow that allows developers to train robots using small amounts of human demonstration data.

Apple has reportedly halted the development of its future Vision Pro 2 headset, opting instead to focus on a more affordable variant. The decision comes as the company grapples with the high production costs associated with the Vision Pro, which was released on February 2 in the US for $3,499 and will be released on July 12 in other countries. According to insiders familiar with the matter, Apple is not expected to manufacture more than 500,000 Vision Pro units this year, casting doubt on the device's ability to gain widespread adoption at such a premium price point. The tech giant's suppliers have already begun scaling back production, with one supplier reducing output by 50% in May due to forecasts of weaker-than-expected demand.

While the Vision Pro promised to deliver a groundbreaking mixed-reality experience, its excessive cost effectively priced it out of reach for the mass market. Recognizing this barrier, Apple has reportedly decided to abandon the development of the costlier "Pro 2" model and instead channel its efforts into creating a more budget-friendly "Vision" variant. The new device is expected to feature fewer cameras, simpler speaker systems, and a streamlined headband design, all aimed at reducing production costs. However, sources indicate that Apple is struggling to significantly lower the costs of key components, such as the display, which could further delay the launch of the successor model. Nevertheless, the company's goal is to create a mixed-reality headset priced around the level of a high-end iPhone, approximately $1,600, and launch the cheaper headset in late 2025.