Microsoft is killing off the HoloLens 2, the company’s mixed reality headset, signaling what could be an abandonment of the general market.

Microsoft HoloLens has been one of the industry’s leading AR headsets. Its HoloLens headset served as the basis for attempts to design combat goggles for the US military. Unfortunately for Microsoft, early tests showed the HoloLens led to “mission-affecting physical impairments” in 80% of soldiers after less than three hours. As a result, Congress put a hold on further funding until significant improvements could be made, resulting in the improved IVAS (Integrated Visual Augmentation System) devices that Microsoft began delivering to the US Army in mid 2023.

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According to UploadVR, Microsoft is now telling partners and customers they should buy up existing stock before it runs out, and has confirmed to the outlet that it has stopped production of the HoloLens 2. Support for the device will end January 1, 2028, but the devices will receive “updates to address critical security issues and software regressions” till December 31, 2027.

There is no apparent successor on the roadmap, although Microsoft told UploadVR that it remains “fully committed” to the HoloLens IVAS, the device the military is testing.

The Mixed Reality Problem

The news should come as no real surprise, as the mixed reality industry has continued to struggle. After its disappointments with the HoloLens, Microsoft engaged in multiple rounds of layoffs in the mixed reality team, even reportedly eliminating the entire development team.

Microsoft is not the only company to struggle, with Apple’s Vision Pro not living up to the hype or the company’s expectations. In fact, the Vision Pro looks to be the closest thing Apple has had to a product flop since the much-maligned Apple Cube.

Mixed reality devices seem to struggle from three main issues:

• Price: Price remains one of the biggest obstacles to widespread adoption of mixed reality devices. For example, Apple’s Vision Pro starts at $3,499 and goes up to $3,899. For that price, a user can purchase a well-equipped M-series Mac that’s ultimately far more capable for day-to-day tasks.
• Use Cases: In many ways, mixed reality devices are still solutions looking for a problem. While there’s definitely a novelty factor, and some tasks may seem more natural, there are still few situations in which a mixed reality device trumps a standard computer for most tasks.
• Physical Side Effects: Microsoft’s issues with the military’s use of the HoloLens are by no means an isolated account. Many users report nausea, headaches, and other symptoms when using virtual reality, augmented reality, and mixed reality devices, especially for any substantial length of time. In contrast, those same users can use a computer for hours at a time without any such symptoms.

Ultimately, until the industry is able to solve these problems, HoloLens will likely not be the last device to be shuttered.