Microsoft Once Believed HoloLens Could Be Gaming’s Future, Now It’s A Military Product

In 2015, Microsoft revealed HoloLens, what it called a “mixed-reality” headset that could have broad application in the consumer market, including in the world of video games. Some early demos were extremely impressive, and Microsoft CEO Satya Nadella even said HoloLens had “mind-blowing” potential for gaming. Xbox’s Phil Spencer said he saw a bright future for HoloLens in the world of gaming.

But HoloLens never panned out like Microsoft wanted it to, and it was discontinued as a consumer product in 2024. Now, HoloLens lives on in a new way–as a military product being run by Oculus creator Palmer Luckey’s defense contractor Anduril Industries.

In a blog post, Microsoft said Anduril will take over production and future development of hardware and software for HoloLens as part of the US Army’s Integrated Visual Augmentation System (IVAS) program. This program is not new, of course, and the Army previously pledged $20 billion for IVAS systems.

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