Microsoft has announced that support for HoloLens 2 will end on December 31, 2027, while the original HoloLens, launched in 2016, will cease support by December 2024.

The HoloLens 2, priced at $3,500, was primarily aimed at enterprise customers, contrasting with Apple's Vision Pro.

Customers and enterprise partners have been notified that this is their final opportunity to purchase the HoloLens 2 before stocks are depleted.

In a strategic shift, Microsoft has partnered with Meta to integrate Xbox Cloud Gaming and Office apps into Quest headsets, moving away from its own mixed reality hardware.

Meta's collaboration with Microsoft allows Quest headsets to create a virtual desktop for Windows 11, similar to features offered by Apple's Vision Pro.

Despite being a pioneer in enterprise AR technology, Microsoft faces challenges due to recent corporate downsizing and increased competition from newer devices.

While discontinuing consumer-focused HoloLens production, Microsoft remains committed to developing the Integrated Visual Augmentation System (IVAS) for the U.S. Army.

The U.S. Army plans to evaluate the IVAS for wider production next year, requesting $255 million to procure over 3,000 additional headsets.

The decision to exit the mixed reality headset market suggests a limited demand for such devices, as evidenced by the competitive landscape.

The discontinuation of HoloLens comes amid rising competition in the enterprise AR space from companies like Apple and Magic Leap.

Microsoft's pivot away from consumer-focused augmented and virtual reality reflects a broader strategy shift towards artificial intelligence.

The U.S. Army has ordered additional AR combat glasses, with extensive testing planned for early 2025 before deciding on mass production.