Microsoft has made the significant decision to halt production of its HoloLens 2 mixed-reality headset, and there are currently no plans for a successor. This marks a pivotal moment in the company’s mixed-reality journey, leaving the future of the HoloLens brand uncertain.
The HoloLens 2, which was introduced in 2019, was marketed as a significant upgrade over the first version, with improved features and performance. However, at a price point of $3,500, it was positioned primarily for enterprise customers, not mainstream consumers.
Upon its release, the HoloLens 2 faced competition from companies like Magic Leap, which quickly pivoted to target business clients as well. The timing was challenging for Microsoft, as the mixed-reality space didn’t experience the explosive growth that many had predicted.
Despite Microsoft’s early efforts to dominate the enterprise market, the HoloLens 2 struggled to gain widespread adoption, and the rapid rise of competitors further complicated its position. Reports indicate that Microsoft had been working on a third iteration of the device, but this project was reportedly canceled in 2022, signaling a shift in focus for the company.
Microsoft Halts Production of HoloLens 2 Signaling Uncertain Future for Mixed-Reality Brand
As for the HoloLens 2 itself, UploadVR reported that Microsoft has confirmed the device’s discontinuation, telling its partners and customers that this is the last opportunity to purchase the headset. Once existing stock runs out, no more units will be available.
Interestingly, this is not the first time Microsoft has halted production of a HoloLens model, as the original version was discontinued in 2018, just three years after its release. The cessation of HoloLens 2 production suggests a decisive end to the product line for now.
Although the device will no longer be manufactured, Microsoft has promised to continue software support for HoloLens 2 until 2027. However, after this period, updates will cease. For the original HoloLens, software support will end much sooner, with the final updates scheduled for December 2024.
This timeline provides a few more years of service for current users, but the discontinuation signals that the product’s lifecycle is drawing to a close.
The decision to end HoloLens 2 production is not entirely surprising, given the circumstances surrounding the mixed-reality division. The device has been on the market for nearly five years, and Microsoft has seen significant leadership changes in this area.
The head of the mixed-reality division left in 2022, and the company has made budget cuts within this segment in recent months. Moreover, the mixed-reality market has failed to live up to the high expectations set years ago, with the steep pricing of devices like the HoloLens 2 proving to be a major hurdle. As a result, it appears that Microsoft is reevaluating its commitment to this technology.
