The Future of Microsoft’s Mixed Reality Department

Microsoft recently announced that they will be laying off some employees who work on mixed reality, particularly on the HoloLens 2 augmented reality headset. This move comes as part of a restructuring of the Mixed Reality organization within the company. Despite the cuts, Microsoft remains committed to selling the HoloLens 2 and supporting existing customers and partners.

Microsoft introduced the HoloLens in 2015, but it has not seen significant success in the market. The U.S. Defense Department awarded Microsoft a contract for a modified version of the HoloLens called the Integrated Visual Augmentation System. However, soldiers using these devices reported experiencing nausea and other issues. While tests for an updated model showed promise, Microsoft has faced challenges in commercializing its augmented reality technology.

In recent years, Microsoft has focused on deploying artificial intelligence technology, partnering with companies like Nvidia and OpenAI. AI features in Microsoft 365 applications allow users to automate tasks such as writing memos, drafting presentations, and summarizing meetings. This investment in AI has shifted the company’s priorities away from augmented reality and virtual reality, leading to the deprecation of Windows Mixed Reality.

Despite the layoffs and reduction in investment in mixed reality, Microsoft has confirmed that they will continue selling the HoloLens 2 headset. However, there has been no indication of a new model releasing in the future. Reports suggest that a third version of the HoloLens has been canceled, while competitors like Apple have introduced their own augmented reality headsets.

Microsoft continues to support features like Mesh, which enable users in headsets to participate in three-dimensional Teams video calls with colleagues. This technology aims to create immersive and interactive virtual experiences for users, moving beyond traditional video conferencing.

Overall, Microsoft’s decision to restructure its Mixed Reality organization and make cuts to the department working on the HoloLens 2 reflects the company’s shifting priorities towards AI and commercialization. Despite facing challenges in the augmented reality market, Microsoft remains dedicated to supporting existing customers and exploring new technologies for the future.