Microsoft Abandons HoloLens, Essentially Telling Meta and Apple That Investing in AR Is a Mistake

Microsoft made a big investment in virtual reality and mixed reality, fully integrating it into Windows 10 in 2017. Additionally, the company aimed to attract manufacturers and developers to promote what Apple now refers to as “spatial computing” and what Meta calls the “metaverse.”

It didn’t go well.

Maybe it was too early, or perhaps the experience was simply not sufficient, but Microsoft’s efforts in this area were losing momentum.

Despite this, the company didn’t completely abandon the AR segment. It continued to release affordable mixed reality headsets for end users and also ventured into a more ambitious area with HoloLens, which is similar to devices offered by Apple and Meta.

Unfortunately, Microsoft’s efforts with HoloLens also faced challenges. The HoloLens 3 project was canceled in early 2022. Most recently, the online publication UploadVR reported that the tech giant had decided to stop production of the HoloLens 2.

Considering recent events, Microsoft’s decision isn’t a surprise, but it’s quite remarkable nonetheless. The company will continue developing a special version of the HoloLens 2 for the U.S. military, but the future of that project is also uncertain.

According to UploadVR, Microsoft will continue to support AR headsets on Windows. The company’s new strategy appears to be centered around its partnership with Meta. It’ll enable features such as bringing Xbox Cloud Gaming and Office suite apps to Meta Quest’s Horizon OS operating system. In the near future, users will also be able to use these headsets as external monitors for Windows 11 laptops, similar to the functionality offered in Apple’s Vision Pro with MacBooks.

However, Microsoft’s decision seems to indicate a shift away from augmented and mixed reality. This decision is surprising given the company’s extensive experience and years of effort in this area. It’s almost as if Microsoft knows something that  Meta and Apple don’t, suggesting that further investment in this area may not make much sense.

Of course, Microsoft may simply prefer to focus on the business areas that are working. Meta has lost billions of dollars in its metaverse, and Apple’s Vision Pro, despite being a technologically spectacular product, isn’t having much success with users.

Despite this, Apple’s and Meta’s commitment to this field appears to remain firm and go from less to more. This is especially the case with Meta, which is having a bit more success with its Ray-Ban Meta glasses. Meanwhile, its Project Orion (a direct competitor to Apple’s Vision Pro) looks very promising.

Microsoft seems to see things very clearly, so clearly that it has decided to withdraw from the market. Time will tell if it was the right decision.

Image | Microsoft

Related | Best VR Headsets in 2024: Which Model to Buy, 9 Recommendations for All Budgets