Among the 10,000 positions cut at Microsoft, entire units are laid off. Like that of the XR, whether it’s the development of glasses (HoloLens), Metavers (AltSpaceVR) or tools for designing mixed reality applications (MRTK). Leaving only Microsoft Mesh alive… For how long?
Caught in the wave of tech layoffs, Microsoft is bleeding like every other company. But in the case of its augmented, mixed and virtual reality units, we must not speak of hemorrhage, but of pure and simple amputation. According to Windows Central, which not only has sources at Microsoft but has also compiled announcements from various business units on social media, the purge is on a massive scale.
We have some sad news, Altspacers. #AltspaceVR is shutting down on March 10th.
Though we hate saying goodbye, we also feel such pride and gratitude for all the magic that happened here. ✨
Thanks for joining us on this epic adventure. #socialvr https://t.co/peCwpaaBl3
—AltspaceVR (@AltspaceVR) January 20, 2023
The entire AltSpaceVR team, acquired in 2017 and developing a Metaverse, has to pack its bags. Ditto for the MRTK team specializing in the development of software tools for designing mixed reality applications. As for the HoloLens division, if the name remains, it would already be an empty shell. Whether it’s questioning the viability (or timing?) of the Metaverse’s development, a change of course or a restructuring in principle – the tech giants recruited too much during the confinement – it doesn’t matter : at Microsoft, VR/AR/XR will take a big hit. Which raises a lot of questions, and not just for chat in Teams.
What about the military helmet contract?
Since the beginning of the Hololens adventure, Microsoft has sold only 300,000 helmets. An insufficient sales volume to cover its costs, but which nevertheless allowed the company to develop an ecosystem. And land a potentially very lucrative contract with the Pentagon for the development of an XR combat helmet for the military. A contract whose maximum extension is 21.9 billion dollars over 10 years, but whose future is uncertain. As we reported to you last week, the first tests are overwhelming for Microsoft, the helmet generating a lot of discomfort among soldiers and suffering from a high failure rate. If the American defense has extended the development part by 40 million dollars for the correction of defects, the acquisition of the helmets is frozen and the rest of the contract on hold.
Read also: US Congress Pauses Microsoft’s Military AR Headset… Because It’s Making Soldiers Sick (January 2023)
This raises many questions about the future of the development of a digital helmet for fighters, which many experts believe is inevitable. Because as imperfect as the current AR/VR/XR headsets are, their adoption, especially professional, is a reality. The bulk of the doubts of tech companies being on the contours of the Metavers.
Doubt on the Metavers, uncertainty on the hardware
On the sidelines of video games, headsets are becoming a reality in the professional field. Thus, during our visit to the Intel factory in Israel, the teams on site presented to us the uses that are made of the Hololens 2 helmet. Namely the training of the teams in the maintenance of the machines thanks to pre-established scenarios: tools are modeled, and trainees and employees learn to do in space. Or the remote guided follow-up of repairs and other critical operations. We have thus been able to observe that training and intervention are indeed a reality in certain environments. If Microsoft throws in the towel on its Hololens helmet, there is no doubt that an HTC, Meta or other will take over. Both in terms of hardware and software. Although emptied of most of its substance, the Hololens division has not been officially closed, which suggests that a future remains possible.
Read also: The metaverse is not taking off: sales of VR headsets are collapsing (Dec. 2022)
In terms of Metavers, it’s a little less clear. If the Mesh collaboration tool which should be integrated into Teams still seems to be on track, the Facebook-style Metaverse project seems to be in a bad way. If Facebook threw itself body and soul into the project under the impetus of its CEO, the company seems the only one to persist in this way a tad hardliner. Regarding helmets, the consumer market is not taking off. Apple’s headphones that are currently in development and could be released this year could be a game-changer. Even if most of the hallway noise suggests that it is a headset aimed at professional applications. As for the Hololens helmet, if the contract with the American army questions, the presence of the CEO of Microsoft Satya Nadella during the presentation of the Meta Quest Pro helmet suggesting that the company could, in the long term, abandon the hardware in this field …
Windows Central
