While companies like Apple and Meta have been investing in their own mixed reality headsets, Microsoft seems to be going in the opposite direction. The company announced on Tuesday that it’s discontinuing HoloLens 2, its advanced XR headset.
Microsoft quits the XR headset market by discontinuing HoloLens 2
In a statement to UploadVR, Microsoft confirmed that HoloLens 2 is being discontinued. According to the company, partners and customers interested in buying HoloLens 2 will be able to do so until stocks run out. Microsoft has committed to providing software updates to fix “critical security issues” and bugs until 2027.
From 2028, the company will completely end support for HoloLens 2. Meanwhile, support for the original HoloLens introduced in 2016 will end later this year.
Microsoft HoloLens 2 was sold for the same $3,500 price as Apple Vision Pro. However, while Apple promotes Vision Pro as a product for anyone who’s interested in it, HoloLens was totally targeted at enterprise customers since the product was never a hit due to its high price tag.
While rumors suggest that Microsoft has at least considered building a new headset to better compete with Apple Vision Pro, details about this product are rather vague and there are no signs that it will be released any time soon. Instead, Microsoft has been working with Meta to bring its apps and services to Quest headsets.
The fact that Microsoft is giving up on the mixed reality headset segment for now could be another hint that the market for such devices is quite small. Apple doesn’t provide details about Vision Pro sales, but analysts suggest that demand is much lower than expected. Vision Pro is currently sold in only a few countries, including the US, Canada, and the UK.
Meta, on the other hand, has been putting its efforts into more affordable headsets focused on media consumption and gaming. Only time will tell whether customers will really embrace the XR headsets.
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