Last year, we learned that Microsoft is discontinuing the HoloLens 2 headset, with existing customers being provided support until the end of 2027. Although the company continued with its U.S. Army contract, the writing was on the wall for the whole division itself. Now, the firm has confirmed that it is quitting the HoloLens hardware business entirely.

The end of the road for HoloLens

In a statement to The Verge, Microsoft mixed reality CVP Robin Seiler confirmed that the firm will not be releasing any more HoloLens headsets moving forward. The comment from the executive noted that:

We are transitioning away from hardware development but will continue to provide support for HoloLens2 hardware and software through 2027, as announced in October. We remain committed to the IVAS program and will shift our focus to cloud and AI technologies, which will serve as the foundation for IVAS as a situational awareness platform.

It is also interesting to note that Palmer Luckey's Anduril will be taking over Microsoft's HoloLens headset army contract completely. Azure will still be used as the backend, but it's clearly a poor outcome for Redmond in the strategic sense, considering it secured a $21.9 billion U.S. Army contract for the technology back in 2021.

HoloLens was troubled from the start

Although Microsoft's HoloLens platform seemingly had great potential both in the consumer and enterprise space, the company couldn't really propel the technology to the mainstream. Former HoloLens chief Alex Kipman resigned following allegations of sexual harassment and, while there were rumors that Microsoft was working on a competitor for the Apple Vision Pro, it's clear that these plans will not materialize anymore. Perhaps the last nail in the coffin already came in October 2024 when the Redmond tech firm confirmed that it is discontinuing the HoloLens 2, its only mixed reality headset.