Microsoft has recently made the significant decision to halt the production of its HoloLens 2 headsets. Despite this development, the company assures users that critical security updates and software regressions will continue until the end of 2027. As we approach the close of 2028, support for HoloLens 2 will officially cease. In contrast, support for the original HoloLens is set to conclude much sooner, specifically on December 10, 2024, following its production cessation in 2018. This information was confirmed by Microsoft to UploadVR.
In the backdrop of this announcement lies a series of challenges faced by Microsoft’s Mixed Reality division. The departure of former HoloLens lead Alex Kipman marked a significant shift, as the division has struggled to maintain momentum in a competitive landscape. Additionally, the company has faced setbacks with its billion Visual Augmentation System (IVAS) for the U.S. military, although Microsoft remains “fully committed” to this project despite the recent news.
The (predictable) end of an era
Microsoft has long been a pioneer in the realms of virtual and augmented reality, yet it has encountered considerable difficulties in expanding its presence within the market. While HoloLens found applications in industrial and corporate settings, the broader Windows Mixed Reality initiative failed to resonate with everyday consumers. The company took a decisive step in January 2023 by laying off teams associated with virtual and mixed reality, including those behind AltSpaceVR and the Mixed Reality Toolkit.
Reports dating back to February 2022 indicated a sense of disarray within Microsoft’s HoloLens strategy, with some insiders describing the development of HoloLens 3 as a “s–t show.” Compounding these technical and monetization challenges were allegations concerning leadership issues, particularly surrounding Kipman, who faced accusations of fostering a toxic workplace environment. Such claims included instances of inappropriate behavior and a culture that reportedly undermined women’s contributions.
Official communications regarding HoloLens from Microsoft have been sparse, and the company’s shifting strategies regarding mixed reality have only added to the uncertainty surrounding its future. Frequent leadership changes and restructuring efforts within the organization have likely contributed to the inconsistent trajectory of HoloLens development.
The future of VR at Microsoft
Despite the cessation of HoloLens 2 production and the discontinuation of the Windows VR platform, Microsoft is not abandoning its ambitions in the virtual reality space. The company has forged partnerships with Meta and Apple to integrate Microsoft software onto platforms like Meta Quest and Apple Vision Pro. Reports suggest that future mixed reality headsets from Microsoft may be powered by Android rather than Windows. Although these devices may not run Windows natively, Microsoft is exploring solutions to enable full Windows desktop applications to operate via the cloud.
Given Microsoft’s history with virtual and mixed reality, the fate of these plans remains uncertain. While there is potential for new mixed reality headsets to emerge as early as 2025 or 2026, the industry will be watching closely to see which initiatives Microsoft ultimately pursues and brings to fruition.
