Microsoft may be abandoning VR, but not yet giving up US military funds


Maxence Glineur

December 24, 2023 at 2:47 p.m.

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IVAS © © Jason Amadi

Microsoft and the US Army are developing a VR headset for field operations © Jason Amadi

If the tech giant has indicated that it is partially withdrawing from the mixed reality race, it nevertheless has some contracts in progress that should not be lost.

A few months ago, Microsoft and the US Army decided to continue developing a VR headset for soldiers in the field. Although the project did not get off to a promising start, the Redmond firm has improved its prototype and is almost on the verge of making the HoloLens, here called IVAS, a fully-fledged piece of equipment in the military arsenal.

However, with the company abandoning most of its mixed reality projects, could this partnership fall through?

One more foot in VR

With the thousands of layoffs made, in part, in its teams dedicated to VR, it is clear that Microsoft will not be able to devote as much effort to this technology as it has done in recent years. The HoloLens 3 will (surely) never see the light of day, and Windows 12 will be more focused on artificial intelligence than anything else. And this, even though the sector could be revived by the arrival of the Apple Vision Pro in the months or weeks to come.

However, questioned by our colleagues from Neowinthe Redmond firm insists on its intention to keep at least one foot in this area: “ Microsoft remains committed to mixed reality and the metaverse, bringing the physical and digital together in an open, accessible and secure way for our customers and partners “. The company has also entered into a partnership with Meta to deploy some of these services, including Xbox Cloud Gaming, on the Quest Store. It is also developing a version of the Office suite for Apple’s headset.

HoloLens © © Microsoft

Niche markets and businesses: this is what Microsoft now seems to favor for VR © Microsoft

Promising niche sectors?

The company is also committed to “ continue to work with the Army to make IVAS an innovative device that will significantly improve the safety, effectiveness and capabilities of Soldiers “. Although American elected officials are not as enthusiastic as the military about this technology, they have still committed several hundred million dollars to the project.

If Microsoft manages to convince them further, thousands of headsets could be ordered. The American army has deep pockets, and this niche market alone could bring in more than enough for the Redmond firm not to completely ignore VR. The company also claims to remain involved with professionals wishing to use the HoloLens, by adding Copilot to its program dedicated to them. In fact, it is especially consumers that Microsoft no longer wishes to target.

However, it remains to be seen whether the company’s mixed reality headset will remain on the heads of military personnel and workers alike. Other manufacturers, such as Lenovo, are developing and marketing their own products, and Apple’s entry into the sector should encourage many to follow suit. Microsoft could well be content with developing and maintaining software and cloud standards and environments for its future partners, which could already prove very successful.

Source : Neowin



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